8 reasons to give your customers packaged options

Giving customers a choice of different options at different price points helps to shift decision making from a binary “buy/don’t buy” mindset to “which should I buy?”

Read the full guide to learn about the 8 strategic advantages of choice, from empowering faster customer decisions to attracting diverse budgets and needs to crafting the perfect upsell.

Interested in learning more? Check out Untapped’s Pricing Psychology service.

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8 reasons to give your customers options to choose from at different pricepoints

  1. Empower your customers to make easier, faster decisions
  2. Attract customers with different budgets and different needs
  3. Shift the focus from cost to value by pricing product bundles or service packages, rather than the individual components
  4. Influence price perception by anchoring with a very high priced option
  5. Remove psychological barriers by packaging together the most commonly used products or features
  6. Create the perfect upsell by showcasing an increasing amount of value at different price points
  7. Avoid comparison with your competition and shift customers from a binary “buy/not buy” mindset to ”which should I buy”
  8. Nudge customers  to the most effective solution as they can clearly see the trade-offs between value and price

How to get started designing packaged options

We like to say “Price the cake, not the ingredients.” But before you can do that, you need to know enough about the ingredients to “Price the cake” realistically. Start by listing all the features you have to work with. This allows you to begin to mix and match to create packages. Here are a few things to keep in mind as you do:

  • 3 is the magic number when designing options to offer your customers. Aim to offer 3 relevant choices (Good-Better-Best), everytime.
  • For the “Good” package, reduce your core offering to create the lowest-priced option. It should clearly be an inferior offering, at only a slightly lower price.
  • For the “Best” package, throw in all the bells and whistles for a much higher priced option. Think of how you can really go the extra mile for your customers.

If it‘s not possible to add or remove from your core offering, consider differentiating with customer service levels, payment terms, delivery options, volume, access, or subscription/contract length.

You can always search online to find inspiration of how competitors and even parallel industries have crafted their packages to offer choice while maximising value.

You can also check out these other resources from Untapped: