Three alternative offerings
Although you know exactly what is your best offering for price quality or what the customer really needs, you still have to give him the option of choosing himself.
So you need to present:
- The product or service he will eventually choose
- An entry level product or service with less quality or features at a lesser price
- A product or service with more features or better quality at a higher price
Having the possibility to choose from three products gives power to the customer although you know exactly what he will buy.
Of course there will always be:
- Customers that will purchase the cheapest because they want to limit their spending
- Customers that will buy the most expensive as they believe the high price tag is a guarantee for the best product.
Still during your lead qualifying phase you should have found out the customer typically wants a cheap or an expensive solution, which would allow you letting to adjust your offering.
Shorten sales cycle and increasing sales deals
Presenting more products or services will make the selection and the final choice more difficult and increase the time needed to decide as the choice will not be so obvious. Suppose you present four possibilities then it is likely that there are now two possible products or services with best price / quality. This will confuse the decision maker and discussions will take longer.
Limiting your offering to three products or services will:
- Increase the number of sales deals as the customer is enlightened he could easily take the best decision
- Shorten your sales cycle as the customer only needs to choose between 3 alternatives with one obvious choice.
How much choices have your customers?