Remember how Goldilocks was insistent on breaking and entering, stealing food and using the Three Bears' beds?
Well - it wasn't all bad.
The Goldilocks Effect is used by businesses left, right and centre to increase their sales and profits. It's all about giving your customers Options when they're choosing to buy from you. Just like Goldilocks had options of what Porridge to munch on.
👎 - Providing one price point on a quote gives your customers 2 options - Yes, or No.
🙌 - Providing three packages when providing your proposal gives much more choice, and puts the value decision in the hands of the client.
Consider this:
Bronze Package
A web developer could offer a Professional Website Design, and Software Integration with an 8 week turnaround.
Silver Package
They could offer everything from that package, add on a Branding Guidelines Pack, and prioritise the work for a 6 week turnaround.
Gold Package
Or, they could offer everything from that package, add on a Sales Consultancy Session and a 4 week turnaround.
The above is obviously only a fictitious example, but you can quickly see how adding small add-ons that provide significant added value can massively improve your sales income - and I'm betting it'd significantly improve your profits too!
Giving your customer the value decision will improve your profits.
So how do you come up with these packages?
Start with what your current standard service package is and break it down into it's component parts.
Are you already offering additional value which isn't essential to the core service?
Could you break that down into your first two packages?
Is there anything you could add on that provide additional value that could make up your top tier package?
Is there any scope to speed up delivery time?
The main thought process you need to be having is "how can I add value?".
When you can add value, you can charge more.
Everything deal in life is a value exchange. Whether it's trading 3 chickens for a goat, 2 goats for cash, or using that cash to buy cow milk. Everything has a value.
