Your prospective client balks at signing up for your $15,000 “Standard” package. What do you do?
- Show him why he needs it and why it is a good value?
- Show him your $9,000 “Basic” package?
- Show him your $22,000 “Deluxe” package?
- Show him the door because you don’t have any other packages?
Some say that you should “drop down” to the lower priced package because it will appear more affordable next to the more expensive option you first showed him. Others say that if you do that, the prospect will be more likely to see the lesser-priced option as inferior and “buy” nothing.
They say that instead of moving down in price, you should move up.
Moving up in price, that is, from your $15,000 package to your $22,000 package will get the prospect thinking in terms of value instead of price, they say. If money is truly a factor for him, your $15,000 package may now seem more attractive.
My thoughts:
- Clients are always concerned about price but they are more concerned about making a mistake. If they can afford it, they would rather pay more and make the right decision.
- It’s not just the price that’s important, it is the perceived value. A more expensive option that includes a lot of “nice to have but not essential” elements is different than a package of “critically important” elements, which is different than a package of “important but can wait” elements.
- What you should do depends on what you’re offering and what other options the client has, i.e., other lawyers, waiting. Try both strategies (higher then lower, and lower then higher) and see which one works best.
- If the client still can’t decide and is ready to walk, having an undisclosed third option ($9,000/Basic) might allow you to save the sale.
- In some circumstances, it might be best to offer all three options to the client right from the beginning.
How’s that for a lawyer-like answer?
One thing is certain: not having at least one other option should never be an option. Always have something else to offer a would-be client because showing them the door isn’t a good option for either of you.
You’ll get more clients signing up when they are referrals
