IF YOU HAVE 3 PRICE POINTS

@thesalesjam

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Selling · Other Product

pricing strategy

Why it worked

The video uses relatable examples like coffee cups and popcorn to illustrate a psychological pricing strategy. The clear visual aids and direct explanation make the concept easy to understand and apply.

Summary

This video explains how to strategically price three product tiers to influence sales. By adjusting the price and proximity of the middle option, you can make either the highest or the middle tier appear more attractive to customers.

Structure

1Introduce 3 price points
2Explain how the middle price dictates sales
3Demonstrate with coffee cup example
4Demonstrate with popcorn bucket example
5Explain how to drive sales of the largest item
6Explain how to drive sales of the middle item
7Conclude with the importance of a high-priced option

Product placement

Original caption

Say you have 3 different prices for different features but you don't know how to #sell more of one. Alex Hormozi teaches us how 📹

More from @thesalesjam

Their other posts in the index, biggest breakout first.

Starbucks: (a) it APPEARS - a corner watermark, a channel or studio logo, an end card, a credit, a name on clothing, a repost stamp. Removing it would not change what happens in the video. Popcorn buckets with prices: (a) it ACTS - they are used as visual aids to explain a pricing strategy. Removing them would change what happens in the video.

On-screen text

IF YOU HAVE 3 PRICE POINTS SMALL MEDIUM LARGE THE MIDDLE WILL DICTATE HOW MANY YOU SELL EVEN IF YOU KEEP THE SMALL AND THE LARGE AT THE SAME PRICE FOR EXAMPLE LET'S SAY WE'VE GOT $5 AND $10 AS THESE THINGS IF I PUT THE MIDDLE VERY CLOSE TO THE TOP THE TOP ONE WILL LOOK LIKE A STEAL COMPARED TO THE MIDDLE BECAUSE IT'S ONLY 10% MORE AND I GET MORE STUFF SO IF I WANTED TO SELL MORE LARGES I WOULD PUSH THE MEDIUM RIGHT NEXT TO IT TO MAKE IT SEEM LIKE A NO-BRAINER UPSELL PSYCHOLOGICALLY ON THE FLIPSIDE IF I WANTED TO SELL MORE OF THE MIDDLE I WOULD EXPAND THE DISTANCE BETWEEN THE LARGE AND THE MIDDLE SO THE MIDDLE WOULD LOOK LIKE THE MORE REASONABLE OPTION THE PREMIUM PRICE YOU SHOULD ALWAYS HAVE A VERY EXPENSIVE THING BECAUSE YOU CAN DRIVE MORE SALES WHILE ALSO ALLOWING PEOPLE WHO WANT TO SPEND THE $$$$ THE EXPENSIVE THING

Transcript

If you have 3 price points, small, medium, large. Where you move the middle will dictate how many of them you sell, even if you keep the small and the large at the same price. For example, let's say that we've got $5 and $10 as these things. If I put the middle very, very close to the top, the top one will look like a steal compared to the middle, because it's only 10% more and I get a lot more stuff. So if I wanted to sell more larges, I would push the medium right next to it to make it seem like a no-brainer upsell psychologically. On the flip side, if I wanted to sell more of the middle, I would expand the distance between the large and the middle, so the middle would look like the more reasonable option compared to the premium price. You should always have a very expensive thing because you can drive more sales to the middle, while also allowing people who want to spend the $$$$ the expensive thing.