We spent Xmas and New Year on a UAE/India cruise and the cruise line demonstrated a genius example of how to use price stacking to convert more sales of their premium priced options that you can apply to sell your premium level programs too.
As soon as we boarded the ship, we were invited to buy an internet package.
Set aside your own thoughts about paying to access the internet on holiday for a moment. That’s not the important part of this story.
I’d guess it’s similar to how I feel about buying alcohol packages though. LOL.
Anyway, there were three options for purchasing access to the internet:
- You could pay $29.99 for one hour…
- $59.99 for one day…
- Or, $339 for 15 days’ 24/7 unlimited access to their superfast connection (lol) for streaming.
When you are presented with these three options, the first thing you do is to run the numbers in your head.
You can’t help it, it’s instinctive.
… If one hour is $29.99, paying $59.99 for 24 hours gives you roughly 22 hours for free = that FEELS like a bargain!
… However, if one day is $59.99, paying $339 for 15 days gives you roughly 10 days for free – that FEELS like a NO BRAINER!
I was talking to a lady on the ship who was clear before she boarded that she only wanted access to the internet so she could WhatsApp her sister on Xmas Day and NYE.
Her original intention was to buy an hour on both days, but told me she bought the 15-day package because “it was such great value“.
Having the top package meant she could video chat with her sister throughout the cruise, and stream movies from Netflix cheaper than renting on the ship.
If she had ONLY been presented with the option to buy the 15-day package for $339, she would NOT have bought.
If she had ONLY been presented with the option to PAYG, the cruise line would have made 2 x $29.99.
But… because they had stacked the pricing in this way, even though she paid $279 more than she was originally intending to, she FELT she had got herself an amazing deal.
And… the cruise line made a PREMIUM sale that they would not have otherwise.
Price stacking to sell time-based services:
(By the way, you are devaluing your expertise and limiting your income if you are selling access to you in time units. If you are, then you might like to check out this post I wrote on how to package up your services.)
Anyway, if you sell time-based services such as virtual assistance, hourly coaching or website development, you can package up in minutes/hours, or half/full days.
E.g. minutes for VA type services:
- 60 minutes for £180
- 210 minutes for £350
- 360 minutes for £480
Or, days for coaching type services:
- 1 hour for £180
- Half-day for £350
- Full-day for £480
When you stack your prices effectively, not only will you make more premium sales, your clients will feel great about their decision to buy your premium option.