The correct way to arrange 3 pricing levels

by Ben Roy

Posted: 15 years ago 4 replies

INTERNET MARKETING

I'm putting together an offer for 3 different levels of a service. Here's what I know:

I want to price the bottom tier, the 'Silver' package at $27.
I want to price the top tier, the 'Platinum' package at $97.
I want to make as much money from the offer as I can.

The question is how much should I price the middle tier, the 'Gold' package at to accomplish this? Also, how much 'value' should the packages deliver to accomplish this? The service levels differ primarily in the number of submissions allowed, so they can be directly equated from one package to the next (unlike say, content, where each item could have a variable value).

So if Silver is 100 submissions and Platinum is 1000 submission, should Gold be 300, 500, 700? That has to be figured in with the price.

#arrange #correct #levels #pricing

CDarklock 15 years ago

Originally Posted by Ben Roy

The question is how much should I price the middle tier, the 'Gold' package at to accomplish this?

$67 and 300 posts.

So Silver is 27 cents a post, Gold is 21 cents a post, and Platinum is 9.7 cents a post.

Most people are going to buy Gold, because when offered three choices, people take the middle one.

Anyone who does the math on it will see immediately that the Platinum offer is the best deal, and that they don't save all that much on Gold. Gold is still a better deal than Silver, though, so if they can't afford Platinum they'll still go for Gold.

Alternately, $67 and 500 posts makes Gold 13 cents a post. Same scenario, but people are more likely to think they won't need Platinum. It may satisfy your desire to be more "fair" about things, though.
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- Ben Roy 15 years ago
  
  Ok, interesting take. I was thinking either 67 or 77, with the idea being to make the 97 package so insanely good compared with the middle that people basically have to take Platinum. Maybe that was backwards.
  
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  jglover 15 years ago
  
  Nothing wrong with that either...
  
  "don't have to get it right...just have to get it going."
  
  heck look at Microsoft Windows...they STILL haven't got it right.
  
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jglover 15 years ago

I'd go 500 at a $47 price point...

I tend not to over think things though.

Justin
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