This was one of those steps to success where we were shit scared to implement and then in a matter of days it changed our business life forever! No longer were we having cash flow issues and not getting paid on time every month…
This wasn’t so much a game changer, it helped us to stay in business!
Most people only offer one price point for each of the treatments they offer, for example with a Skin Micro Needling treatment using our excellent and very popular Skin Repair Pen, you may be quoting £349, which is fine in principle but you’re severely limiting your client’s options. Perhaps they may be looking for a discount if they buy multiple treatments?
Let’s give you an example, you could in fact quote them £399 for one area, £1,045 for 3 treatments (a saving of £152 in total, then rounded to just £349 per treatment) and £1,945 for 6 areas (a massive saving of £449 in total or working out at only £325 per treatment).
Now this does a few things, as previously mentioned it tells your client you are happy to reward loyalty by giving them a discount if they buy multiple treatments. It also puts the idea in their head as they may not have even thought of having multiple treatments and arguably best of all it anchors their mind on the last high price which now makes £399 sound dirt cheap compared to £1,945 and in fact actually the package you wanted them to go for, the £1,045 also sounds inexpensive when compared to £1,945.
Not forgetting there are those people in the world who always go for the best no matter how much more it is and you have just gotten yourself 6 treatments from one sales call and the money is in the bank today, helping with the all-important cash flow of a business. Anyone need any more convincing…?
Did we also mention that when given the option, nearly everybody always goes for the middle option, weird but think about it, people don’t want the cheapest as worried it might not be any good and then the other end of the spectrum worried about spending too much by going for the most expensive, so what do people do, they go for the middle option, simple!
Now don’t think I have finished there when it comes to pricing, we can take this even further, if we again use the example with skin micro needling using The Skin Repair Pen, and it’s something we encourage all of our training delegates to do, is to offer a low starting price point to encourage enquiries, which can start from £299 but this is actually for small areas and then the most likely price their customers are going to be paying will in fact be £399, for larger areas!
Again the difference these extra £50’s make to your bottom line, yes NET Profit, not just turnover, when multiplied over hundreds of treatments per annum is huge and very much life changing! Or what I call “The Small Big”.
The final element to consider while we are on the subject of pricing is those all important pounds, dropping the price from £300 to £299 or £350 to £349, trust me… it makes a difference. It’s all psychological, but it works, the reality is the treatment is still £300 but taking that £1 off the price and advertising it in the £200s makes it all the more appealing… another small but simple pricing technique.
Key Point Give your customers a few choices when it comes to different prices as you will be surprised at how much some are willing to spend! However, whatever you do, don’t give them too much choice as what often happens when we are surrounded by too many options, is that we can’t make our mind up and end up going for nothing!