Which option would you like?

Packaging your services in a clear and succinct way is an important part of confidently presenting what you have to offer. It ensures that clients understand the full range of your services, the different ways in which you can help them and their entry point.

Think about this for a moment, if you are presenting your services, which of the following services would you present first A, B or C?
• Service A – $950.00
• Service B – $2,500.00
• Service C – $5,750.00

My view is that you should start with C and work backwards.

Many small business owners do not know their own value and often make a conscious decision about what they believe the prospect can afford to pay, and would probably offer the least expensive option first because they believe the lower fee would improve their chances of getting the business.

In some instances, getting your foot in the door can be helpful, but may set a precedent that could be difficult to change later down the road. As the old adage goes, it’s always easier to go down than up.

According to Information Resources Inc, “… the shopper appreciates and in fact explicitly wants to receive stimulation for the buying decision he is making … He is keen to be informed and inspired, tempted and pampered by surprising and persuasive functions, emotions and sensual impression.” This means show them your range, present more than one option, give the customer the chance to see the different ways they can benefit. “

Several years ago, I came across an effective packaging and presenting approach called FEBE – Front End Back End where all the services were packaged into different options. The opening offer termed “an outrageous offer”, was a free flight to Fiji and this was on the condition that you signed up for the £10,000 course being offered.  If you were unwilling to make such an investment, a cheaper package was down-sold at £5,000; and another for £2,000. The presenter skilfully worked from the most to least expensive, explaining the different options and respective benefits.

I was encouraged by the simplicity of this offer and how other small business owners approach such a proposition by habitually offering the cheapest option first. This business understood buying behaviours and customer perception, they knew that different packages would meet different needs and budgets of most of their perspective customers rather than simply stating one price. 

So, when you have an opportunity to offer your services, provide a series of options rather than simply offering one price or bundling all of your services together.

As we approach the end of the year, I am providing a free review of your firm’s packaging strategy. During the review, we’ll discuss:
• Your firm’s current packaging approach
• Packaging options
• Opportunities to improve your firm’s packaging

To request a review, simply send an email to info@mortonpatterson.com.

 

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