Here’s a way to encourage more of your clients to commit to your business, long-term, with “decoy” pricing. It’s something I learned about a while ago but I just saw an example of it in action and it was really sweet. Made me think of you.
Adobe has monthly and annual pricing for their apps. You can pay $29.99 a month or $19.99 a month. Only difference is that for $29.99 a month, there’s no contract. They can cancel at any time. And at $19.99 a month, there’s a contract. They have to stick with you for a year.
So it’s kinda like “rewarding” clients for committing to working with you for a year. Those that don’t commit have to pay a whopping 50% more per month. That’s quite an incentive to commit.
“No contracts” is often a selling point (that your competition might be using) for monthly payment options but what Adobe have done here is made their contract option WAY more appealing by comparing it side-by-side with a more expensive “no contract” version.
The key lesson is that you don’t have to “cave in” to pressure from your competitors who offer “no contracts” as a benefit. You can still give your customers a “no contracts” options but in such a way that they actually change their minds about what they want and take the option that serves you and them better.
The “no contracts” price becomes a sort of “decoy” price here. Sure you’ll get some folks who will still take it. But I’ll bet they’re the minority by a mile.
You can achieve 2 things by starting to do this today:
- You get a client for a year. Instead of just 3 months. (“No way am I paying $120 extra for the same software!”)
- You secure a monthly income.
All just with some clever positioning of your pricing options.
You can get more strategies like this from the book “Brainfluence – 100 Ways to Persuade and Convince Consumers with Neuromarketing”. It’s one of my favourite books because it’s got great strategies that can really transform your business, and they’re all backed by neuroscience and studies.
Get it here:
PS: Look – I’m no teacher, coach or anything. I’m a Tech Assassin. But I saw this and it made sense to me. I think it’d work great for coaches especially. So many times your clients want a “no commitments” 1-month arrangement but you know that transformation takes longer than that. 3 months minimum but more likely 6-12 months. Here’s a great way to help them help themselves.
Get the book here: https://techassassin.co/brainfluence