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the initial transaction and over time. Photographers offer at least three basic purchase options. Only about twenty
percent of their clients choose the basic offer.
When you subscribe to a newsletter like mine, you're given an optional volume choice that is only offered after you've
already decided that you want the product. With my Business Breakthroughs, that option was a discount on the second
year.
You might say that my publisher is enriched by a two-year deal. Technically, I would have to agree. But the real
beneficiaries are the subscribers. They get two years of valuable business advice for much less than the per-issue
subscription price they were initially willing to pay. Plus, they receive an extra business-building report. And because
they sign on for two years instead of one, they will get longer and greater value out of the newsletter. They'll become
more committed and connected to my business-building strategies.
Also, they typically get additional free bonus incentives for choosing this preferential option.
Just try offering four for the price of three, or buy three and get one free, of almost anything, and you'll see clients that
typically bought just one item going for the higher quantity.
I first discovered the power of offering volume choices when I worked for the publisher of an expensive business
magazine. I wanted to offer just a basic one-year subscription option-with no other choices.
"Wrong!!!" the publisher informed me. Then, rather than merely state his point, he did the greatest favor possible for
me-he proved it. He let me do two mailings. Mailing number one only offered people a one-year subscription and
nothing else. Mailing number two offered one year for $55. But you could also choose a two-year option for $95 and a
three-year "best buy" alternative option for $120.
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With the first mailing, no one had a choice. So my average purchase was $55.
With the second mailing, because I offered people three different choices (two of which were more value-superior than
the basic one), 40 percent chose three years . . . 25 percent chose two years . . . and only 35 percent chose the one-year
option everybody had to choose in mailing number one.
By merely offering people three different choices, two-thirds of the buyers bought a higher unit of sale. We made, on
aver-age, twice the profit per client we would have made if we only offered one choice-which is really no choice.
A bookseller uses a variation of the volume add-on to sell more books to public libraries. If a library calls and asks her
to send over twenty modern Greek novels, she has trained her staff to say, "Since we don't know exactly what you have
on the shelf now, we'll send over one hundred books on consignment. Just send back those you don't want."
Almost without fail, the libraries keep many more books than they originally ordered. So, her business is increased, the
reading public gets the advantage of a wider selection of novels, and the library gives the public better service. Three
winners.
Smart Add-on No-Brainers
We have our cars hand-washed every week at our home. When the car-wash man came out, instead of just offering me
one choice of $10 a week per car, he offered me a better plan for two cars and an even better deal for three. I chose
three, and he more than doubled his revenue and profit per week from me. I appreciate the good value he gave me-and,
frankly, it's much more convenient than taking the cars into the car wash.
Would we normally wash each of our three cars every week on our own? Doubtful. But he offered me a choice, which
was so much more appealing. Now it's a no-brainer.
How many of your clients could be advantaged by receiving a larger quantity of the product-or a continuous supply of
the service? If most would, you can have confidence that making this offer actually adds greater value to the client,
who would ordinarily need more product eventually. Instead of paying three times as much, when you offer it for just
two or two and a half times more, they save 17 to 33 percent.
You actually profit more in the process of extending a greater value to your client. How? Put your pencil to it. Say the
client originally intended to purchase x size or amount of product or service, and you make a 50 percent profit. Now,
through the use of a volume option, that client buys three times as much for just two and a half times the price. You
just added whatever the difference is between the hard cost of the extra products or services and the additional price
you receive-as windfall profit. [ Pobierz całość w formacie PDF ]