Now that you've got your product Assembled, it's time to Package it in a way that you can actually make money with it. The simplest form of that is something like this:
Made a product about it. Like to buy it? Here you go.
Well, that's all well and good for the small fry, but the big boys use two major elements of the process to exploit their customers for more money.
Sorry, does that sound bad? Exploitation isn't bad. To exploit something is to use it for your own benefit. That's what your customers are for. They are to benefit you and your business. If they are not doing either, what the fuck good are they? In fact, if they aren't giving you money, they aren't really customers.
I told you it wasn't pretty.
Now, this doesn't mean you don't care about your customers; "service them well and hold their custom" became a saying for a reason, although you've not heard that unless you're a freak like me and read business books from over a hundred years ago.
Or unless you've watched Sweeney Todd: the Demon Barber of Fleet Street enough to recognise Judge Turpin's line to the still-incognito Benjamin Barker. Which, you know, is still being a freak like me, (Because my favourite Broadway musical may be Sweeney Todd, but I do have a favourite Broadway musical.) What it means is that you have a secondary goal besides caring about them and helping them, which is obviously enough to get their money.
Not all of it. Never all of it. I like to work under the assumption that you want the same thing the average church wants: ten percent. At any given point in time, you want to take no more than ten percent of a customer's expendable income. (Also a good rule of thumb as a customer: add a zero to the end of a product's price; if you don't have that much money, don't buy it. So if someone is selling a $5,000 product, you don't care unless and until you have $50,000 to spend.) jhgfhuhygtyhuyghuhuhyyhyuyhuhjgyuhjyuhhyuyhyhyhkjjfgjjgfdsfrt
Sorry, I just dropped some mashed potatoes on my keyboard and had to wipe it up. I could just erase the resultant gibberish, but that wouldn't be funny.
A lot of people like to talk about "leaving money on the table." I prefer to think of it as "leaving money in my customer's pocket," which in general is a Good Thing because the last Goddamn thing I want is a bunch of broke customers.
I mean, think about that. Especially when you just sold them something that purports to help them make money: you have exacerbated the pain of "you need money," then taken all their money, and now you have to support and guarantee your product for a bunch of people who are literally desperate to make money. It's like guaranteeing yourself a long string of people without money that expect you to help them. So you either help them for free, or send them away unhappy, and either way you can't run a fucking business like that. It doesn't scale.
What scales is the four-tier model.
This post is obviously going to run a little long. 😉
Where you start is with these three options. A lot of people label them Bronze, Silver, and Gold.
It is the natural tendency of all people to take the middle option.
But let's say they don't. Let's say they go for the $17 option. Your next step is to upsell them to a higher price point. You want more than $17, right? This is where everyone fucks up.
What they try to do is upsell to the $47 point, then to the $97 point, Nope. Nope nope nope nope nope.
You want to upsell straight to the $97 point.
The reason for this is that if they say no, you want to extend this with a downsell. You follow the "I only want the cheap one" with "well, how about the expensive one instead?" and if they go "no, just the cheap one" you want to say "okay, okay, how about the one in the middle?"
And now if they say "no" you just give them the cheap one. You want to ask at most twice for them to buy something else. Cheap! How about expensive? No, cheap. Middle of the road? No. Okay, cheap.
But if they say yes to expensive, then up the ante and tell them about the secret special ultimate option that isn't even on the page. So it goes: Cheap! How about expensive? Sure! How about ultimate?
Ultimate would be like, $197 or something. And it would have awesome features none of the other packages had.
So you've got two questions when someone picks cheap. You have an upsell, followed by another upsell if they say yes... and a downsell if they say no. And after two questions, they get their product. Done.
But what if they go for the middle package, as most people will? Simple: just like the cheap package, go up two levels. Offer the ultimate immediately. If they want it, great. If they don't, then offer the expensive one. And that's your two questions.
Obviously, if they want the expensive one, upsell the ultimate and that's it. No downsell. Nowhere to go.
There's a lot of effort (and complexity) that can be put into this, but I'll leave it at that for this blog post. Just bear in mind that when you Package your product for delivery, it's not exclusively to get the product into people's hands, but to encourage them to spend more,
Next week we'll cover... uhh... something else. I don't know what. I'll figure it out.