When your offer includes a pay in full option AND an instalment plan, quote the INSTALMENTS FIRST.
4x monthly instalments of £25
Or, pay £75 today and save.
Firstly, it’s about how these options FEEL:
When you state the pay in full price FIRST:
… the people paying in FULL feel they’re paying the ACTUAL price.
… and those choosing the INSTALMENT plan feel they are being PENALISED by having to pay more.
When you state the instalment option FIRST:
… The people choosing the INSTALMENT plan feel they’re paying the ACTUAL price.
… and those choosing to pay in FULL feel they are being REWARDED.
There is also a LEGAL element to this (U.K.)
When there is a pay in full amount, you CAN also offer UP TO 12 instalments before you’re required to hold a credit licence.
You CANNOT legally add charges/interest for offering these ‘credit terms’.
You CAN offer an ‘early settlement discount’.
So, when there is a difference between the two totals:
(e.g. NOT when the price and the total of your instalments adds up to the same amount).
Then, from a buyer psychology perspective – so EVERY client FEELS GOOD about how they choose to pay you…
And, to keep you within the law (U.K.) …
When presenting your price, list the instalment option first, and show the pay in full option second.
I talk more about this tip and increasing the value of time in your promo copy in this week’s podcast episode (20).
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- [Episode 24] Delivering Online Programs: Interview with Vivienne Hill - December 14, 2020
- [Episode 23] The Secret Sauce to Make Your Promo Copy Sizzle! - December 7, 2020
- [Episode 22] Facebook Networking During Lockdown with Suzanne Dibble! - November 30, 2020
- [Episode 21] Why You Shouldn’t Discount on Black Friday! - November 23, 2020