Massively Increase Profits With Product Tiers

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Computer-311339Creating product tiers is one of the easiest ways to increase sales from your current customers.  All it requires is that you design more elite versions of your current products.

You and your customers are already used to this.  We see examples everywhere:

  • American Express pioneered this by having their regular Green card, with their better customers moving up to a Gold card, then Platinum, and finally the elite Black card.
  • Airlines use tiers with their coach, business class, and first class seating.
  • Video games do it with their “Ultimate Collector’s Edition”.
  • Books have paperback, hardback, collector’s edition and signed first edition copies.

You get the idea.

To get started, all you do is create a higher tier of your basic product, then a better one, and then the best one.  Each level up will have a higher price point, of course.

Price tiers work because of people’s buying psychology.  Customers are hardwired to always want to stand out and be the best.  You want to position your product upgrades such that people feel having your top product will give them that satisfaction.

Most people will use your regular product, but others will upgrade, and they will gladly pay the price to get the best in order to feel like the best.

So give those people what they want and watch your profits soar!