Darren Kaberna
Prosper in the face of any challenge by getting focused on what you want in life and business!
Some people will always buy your most expensive product in your dental office
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I really liked this article and wanted to share it. I think the message is very applicable to dental offices as often we assume the patient wants the cheapest option. I think you could make the arguement as Mr. Zanten does here that we might be wrong. Read on!!
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Some people will always buy your most expensive product
A shop in my neighborhood advertises with ’10 cents an hour parking’. Although that’s a great offer in principle, it also annoys me as a customer. See, once you are making the effort to pay for something you might as well pay a realistic sum. Spending a minute to line up for a cash register or parking meter just to pay such a small payment doesn’t make sense. The customer's 'time to pay' is more expensive than the amount that needs to be paid. Why not just make it free? The revenue from those 10 cents an hour isn’t making anybody happy and you add complexity to a process you want to be as easy as possible.
The same principle works the other way around too. Once you made the decision to pay for something you are much more likely to pay for the next thing too. Once you’ve made the decision to buy a cup off coffee, the decision to accept the extra cookie the cashier is offering you is easier to make. When you are paying for gas it is very attractive to also buy something else while you are at it.
At one of our startups we were selling a certain service for $50, $250 and $500 a month. Almost as a joke my business partner added a $1500 option as well. It made the $500 option seem cheap. Within a few months we were selling two to three of those $1500 packages a month. It turned out that for some people the decision to buy something is a difficult one to be made, but once it is made, they just want the best they can get.
It pays off, literally in this case, to make it as easy as possible for people to start paying for your service. As soon as they do, try to upsell whatever you have. Got something at the high end of your service? Try offering it in a slightly different package for twice the money you are asking now. See if there is a market for it, and even if there isn’t, you can still use it to make your cheaper products seem more affordable.
