In the book, Predictably Irrational, there is an experiment that involved subscriptions to the magazine The Economist. Two groups of subjects were offered two different sets of options to see which helped get more clients.
Here they are, with results:
$59 – Internet Only Subscription (68 chose)
$125 – Internet and Print Subscription (32 chose)
Total Sales – $8,012
$59 – Internet Only Subscription (16 chose)
$125 – Print Only Subscription (0 chose)
$125 – Internet and Print Subscription (84 chose)
Total Sales – $11,444
So what accounted for the higher sales of the more expensive option in Offer B?
As you might have guessed, it was the decoy offer of the Print Only Subscription. By offering a similar but inferior option at the same price, sales of the Internet and Print Subscription rose dramatically.
Perhaps because by comparison it looks like such a great deal. And you don’t have to make the offers the identical price – you only have to price them closely.
For example, if you’re offering an training course, you might go with these options:
Event Ticket (Single Component) $47
Complete Package (Includes Downloadable Video & Audio From The Day) $92
VIP Package Event Ticket with Mailed DVD $97
Is the lower priced option necessary?
You’ll have to test to find out, but I’m betting your overall sales and ability to get more clients will be higher if you do offer a significantly lower priced option as well.
Download’able Quote Card “Add A Decoy, Get More Clients…”