How I Only Ever Sold My Most Expensive Package
When I first began my website design business I had to determine how to best structure both my packages and set my prices.
Months later I noticed the result of my strategy; clients only ever booked my most expensive package. Not a single one had ever booked my lowest tier or middle tier package, only the highest.
This fabulous outcome wasn't due to chance, I intentionally structured my packages in a way where the most expensive package was also the most attractive and delivered the most value.
Pssst - there's a free workbook for you to download at the end so you can implement the same strategy in your business!
My Pricing Theory
Here's the theory behind my pricing structure, I have some example numbers that are perfect for demonstration purposes below.
I had three packages, let's call them Bronze, Silver, Gold.
Each package increased in the amount of service delivered. In my case with website design services I added on more pages, more website features, and generally more bells and whistles with the increase in package level and price.
Ultimately my Gold package had absolutely everything you could possibly want for in your website. The Silver and Bronze packages were still good options, but were missing some less vital aspects and included less pages.
Had I set my prices in a very basic manner, with an equal increase between packages, people would be most likely to purchase my middle package.
The Thought Process Behind The Pricing
The thought would be 'well Bronze doesn't quite have enough of what I want, I think I need a few more pages and I'd like XYZ features.'
For Silver the thought would be 'okay, I'm investing more in my business by getting a package better than the basic and I'd really like these features and could make use of those extra pages.'
For the Gold package the thought would be 'well I don't NEED quite that number of pages, I could get away without them, and those extra features would be nice, but aren't completely mandatory.'
So clients would be most likely to go for my middle package.
However, specifically in my business I book only a limited number of clients at a time. I want my clients to know that I'm not juggling their project with 40 others and only partially have my mind on their website, which is to them a massive investment in their blog or business.
This means I only have the capacity to book so many projects per year. To keep my calendar simplistic to organize, I complete all projects in a 2-week period, regardless of if I was completing a Bronze, Silver or Gold package.
(I'm all about simplicity in business, if there's a way to avoid confusion and unnecessary complexity in my business, I'm all into it. Who's with me?)
So, of course if I'm going to spend 2 weeks on a project regardless, it makes the most sense to try to sell my most expensive package, not the middle one.
Setting The Most Expensive As The Best Option
I set up my pricing to make booking the most expensive package a win-win for both my client and myself.
I kept the Bronze package at the same price as in the last example. I then set my Gold package at the price I wanted to earn, again, same as in the earlier example. The only change was in the price of the Silver package, it was now just ever so slightly cheaper than the Gold package, not equal between the Bronze and Gold.
This small change makes all the difference to the though process.
Now, clients still have the same thought process about the Bronze and Silver. 'Bronze isn't quite enough, Silver has everything I need, but Gold ... Well it's only ever so slightly more, and I get so so many more pages and features...'
Suddenly choosing Silver really doesn't make as much sense logically as Gold does. If you pay ever so slightly more, but also receive so much more service and features, it would be silly not to choose it.
Will This Work For You?
This pricing strategy will work for a number of different service-based businesses. I believe this could work especially well for photographers, event planners, coaches, website designers, copywriters and more.
It's all about having a number of options to your services. Here's an example of how this could look for a wedding photographer.
- 5 hours of shooting
- 100 edited photos
- Receive photos 1.5 months after wedding
- 6 hours of shooting
- 150 edited photos
- Receive photos 1.5 months after wedding
- 8 hours of shooting
- Complimentary 1 hour engagement shoot
- 250 edited photos
- Receive photos 3 weeks after wedding
See how Gold involves some enticing extras, a complimentary engagement shoot, significantly more photos, and the turnaround time is much quicker to receive the photos?
(Keep in mind that turnaround time can also be an upgrade, as people generally always want things done ASAP, turnaround time is another way to make one package more attractive over another.)
You'd be silly to not pay the extra $150 for all the extras that come along with the Gold package, right?
When This Structure Won't Work For You
You'll notice that if you check out my packages page, my pricing isn't actually structured this way anymore. While this strategy absolutely worked perfectly for me to book the packages I wanted to when my business began, and I would definitely recommend this structure to others, as my business expanded, my offerings and types of clients did too.
What a blogger wants in their website is completely different from what a business owner needing an e-commerce site does, and that's still different from what a sorority wants. So as the types of websites I took on expanded, my pricing had to change.
I changed to have 1 package for each type of website. 1 package for bloggers, 1 for small businesses, 1 for e-commerce sites, 1 for photographers, etc.
Why did I not do 3 packages for each type of website? Overwhelm and confusion will kill sales. I didn't want my packages page to become a confusing mash-up of a zillion options.
The takeaway, this price structure is wonderful if you have a service-based business with one type of service that can have enticing upgrades.
Your 4 Step WORKBOOK To SET YOUR PRICES
Looking to set up a similar price structure for your services?
I've detailed every step of the process in this actionable Booking Gold Pricing Workbook.
By the end of the day today, your can have your new pricing structure ready to go.