Here at Pricing Power I talk incessantly about the power of options or tiered pricing. It is always good to then hear from people when they have created options in their proposals.
However I have noticed something that is not quite so good.
The allocation of different items or features to each package seems to get somewhat confusing. It is often hard to determine why some of the items are in the low package and why other items are in the other packages. I have even seen some where items in the low packages were not in the medium or top options.
This means that our potential customers have to make choice. They might want some of the items in the lower package and also some items in the other packages. The better of creating options though is when each tier builds upon the lower.
The power of creating options is in the simplicity.
The power of options is the framing affect and also the anchoring affect. By offering different options we are making the buyer look at the frame of reference we want them to rather than comparing you to other potential competitors. The other impact is that of anchoring whereby the highest price option acts to give a high point which makes the other options more appealing.
However all of this power is hinged on the premise that each option builds on the next. Make it easy for your customers to select the package best for them.