Have you considered using tiered pricing for your digital products? There are lots of pricing strategies you can utilize, but tiered pricing does tend to be one of the most effective.
Here, we’ll look at tiered pricing and when it can be used. You’ll also discover how to do it effectively.
What Is Tiered Pricing?
Tiered pricing is basically offering different priced packages. You’ll provide a basic price for the product, then increased prices for larger bundles.
Say you sell online courses. The basic tier would include access to the course only. Then you could create two additional tiers, each offering something extra at an additional cost. The middle tier could include course access, alongside additional resources. Finally, the most expensive package could include the course, resources, and one-to-one email mentoring.
This is just a basic example, but it allows you to market your products to a much larger customer base.
When Might It Prove Useful?
Tiered pricing can prove extremely useful if you’re selling to a wide range of customers. The different prices will appeal to different buyers. For example, not everyone will have the money to invest in your highest package deal. So, they could choose to invest in your basic, lower-cost package instead.
Giving customers options tends to work out really well. People want to choose the service they receive. So, if you give them an option, they’re more likely to buy at least one of your packages.
How Can You Use It?
There are a lot of different ways you can utilize tiered pricing. However, the most effective tends to be offering a three-tier system.
This includes offering a basic price, then a more advanced option, followed up by an expensive price (as in the example above). The basic package is going to be your most successful as it’s accessible to everyone. The advanced option should be advertised as the optimal option, providing everything the customer needs. Then finally the expensive option should offer a complete, excessive service that goes beyond what the customer needs.
The great thing about this tiered option is that it appeals to everyone. You’ll have the opportunity to make huge sales with your expensive option, but you won’t miss out on the customers who can’t necessarily afford that option right now.
Another way to offer tiered pricing is to bundle products together. These are known as quantity tiers. The more the customer buys, the more of a discount they get. This works better for products rather than digital services. This type of pricing is actually known as volume pricing, and it only works better than tiered pricing on limited products.
As you can see, tiered pricing offers a great range of benefits. It’s simpler to incorporate than you might think too. You can always check out your competitors to get an idea of the types of tiered prices they offer.
If you’re looking to increase the chances of making a sale while appealing to a large customer base, this type of pricing can be extremely effective.
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