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Premium Product: Standard Version & Deluxe Version?

by smeezy
5 replies
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Hi folks :-)

I'd like to hear your opinion:

We sell premium products. In the standard version product A costs 10.000€ and with all extras 12.500€.

For customers, however, only the product with the extras is interesting, which means that we don't sell the standard version without extras at all.

From a marketing point of view, does it make sense to compare these two models in the online shop? Or should you offer the product with the extras directly and play fair with the customers?

Are there any studies or articles on this topic? What are your experiences?

Best regards
#deluxe #premium #product #standard #version
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  • Profile picture of the author Frank Donovan
    Originally Posted by smeezy View Post

    We sell premium products. In the standard version product A costs 10.000€ and with all extras 12.500€.

    For customers, however, only the product with the extras is interesting, which means that we don't sell the standard version without extras at all.

    From a marketing point of view, does it make sense to compare these two models in the online shop? Or should you offer the product with the extras directly and play fair with the customers?
    At that price level, it's likely that the closeness of those two price points is encouraging the greater take-up for the higher one. Once you're committed to paying over 10k, an extra 2.5k isn't that much of a stretch - as long as the extras look attractive. You'd get a better picture if the difference between the prices was greater, but be careful of lowering the standard price - you might lose more of your deluxe buyers than you'd gain in new purchasers. By the same token, removing the standard price option entirely would almost certainly decrease sales of the higher-priced product - there'd be nothing with which to compare the value.

    Are there any studies or articles on this topic?
    Yes, plenty. Start here: https://en.wikipedia.org/wiki/Pricing_strategies then see more about the principles of price anchoring and contrast pricing here: The Price Anchoring Effect

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  • Profile picture of the author MValmont
    If you have traffic just split test it and you will see the results pretty quickly.
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  • Profile picture of the author smeezy
    Thank you Guys!
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  • Profile picture of the author dave_hermansen
    Which one do you make more money on? If it's the one with the extras, leave it the way it is. It is serving as your "upsell" all by itself.
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  • Profile picture of the author teampr
    Its always a great ideal to present both to the consumer and let them see what they want. At the end of the day writing 2 sentences about the product a with no extras and stating the add ons will never hurt.
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