A common problem our customers come to us with is regarding pricing strategies and where to set their pricing on price vs value.
As with most products and services potential clients are often attracted in different ways some are price driven, always looking for the best or cheapest price whilst others like to spend a bit more to get that little bit more of perceived quality whilst some want a bit of both they want quality for value for money. In order to avoid any loss of potential customers we often advise our clients to offer a GBB strategy or Good, Better and Best approach. The solution is simple where you offer multi-tiered pricing options (typically a trio of options). You can start with a stripped-down product to attract new customers, the current product to keep your existing customers happy and also a premium laden version to attract those customers who want that little bit more.
You see these approaches all of the time but until now probably didn’t realise. A common option is with software, you usually get a basic package, a common package and then a premium option. It works with tickets to events and also think of cars, manufacturers often release a base trio of versions of each of their models. The same approach can be applied if you have a business offering services rather than goods.
When implementing this strategy of GBB it is important to identify all of the key fencing attributes that will prevent any existing customers from moving down to a basic package. You need to carefully choose features and names which will create clear variation and value. When setting pricing it is always recommend to draw on feedback from market research and expert advice.