Pricing consultancy – Portfolio pricing
Pricing consultants > Portfolio pricing for Good, better, best and Superpremium products
Pricing and premium products don’t sit comfortably together. There’s a tension between being competitive and discounting to compete on price. Should you position your pricing to compete? Or should you position for premium?
It’s a tough choice – and one that you don’t have to make. Because product portfolio pricing helps you to stay competitive at both ends of the market. The truth is that you can’t be both – but you don’t have to walk away from one, just because you want the other.
Put simply, start by planning a product portfolio from good … to better … to best levels of product or service. There will always be customers who look at the basic level product, and there will always be customers who want the best. Show them the options and they’ll make their own choice. Far better than offering your product at a price which presents like an ultimatum – “buy it … or don’t buy it”. A choice of good or better or best gives customers somewhere else to go.
If that’s just the start, there’s much more to think about later. Studies suggest that whatever market you have, between 5% and 15% of your market will always want to buy the best available. So add a super-premium option at high margin and you’re giving that segment somewhere to go. Good for the customer. Good for you. And good business.
So we’re just past chapter two of a gripping story. Planning products as a portfolio, with pricepoints set relative to each other can have surprisingly healthy results. If a high pricepoint anchor works in luxury goods, why not for you too? A business model configured for upselling can become part of how you operate, if it’s planned and executed in the right way.
If you’d like to find out more, click here to browse through a selection of FREE pricing case studies showcasing big differences in pricing effectiveness.
Or click below to see short filmclips which showcase applying principles from psychology to marketing (5 filmclips, 12 minutes).