The Power of Three is a very simple idea that can really provide improved sales and marketing results.
What is the Power of Three?
The power of three is simple, but lets start with the number one. When you offer people one option .. or a take it or leave it option .. they have no choice and there is a high chance you fail to make a sale.
But give people several options and the choice goes from deciding if they want your course to deciding which option they want.
Sadly FE rarely offers people options that could sell more. But they could if they follow this advice.
Examples of the Power of Three Options
Lots of colleges sell these courses and buyers decide on location and price. Where several providers exist in a buyers area they then often buy based on price alone.
The Power of Three says you should offer the standard course at a given price but then offer two further options. These could be based on anything to providing free coffee and or lunch to things like online QA after the course.
So option two might be the course plus an online QA forum where answers to questions are provided within 24 hours.
Option three might be the standard course plus a monthly video update on First Aid principles or techniques.
Each option is offered at a different price point.
Buyers are likely to now see you as being a more switched on provider that goes that extra mile. They see you as being more authoritative.
They now have options to consider rather than a yes/no decision.
Some will plump for option one even if you are a bit more expensive than other providers. But many will opt for option two as it is a bit different and makes them look better in the eyes of their staff and bosses. No one ever gets shot for wanting something extra .. and the cost is not a lot more than the standard!
In some cases the third option .. the luxury option .. is chosen. This is more expensive but people know they get what they pay for and are willing to pay more for the best.
Buyers Don’t Want to Look Cheap
In the majority of cases where three options are given the middle one is chosen. People don’t want to look cheap by buying option one, but can’t always afford the luxury option.
The optimum result you want is the one that makes most profit. Adding extras shouldn’t cost a lot more. You want to add on an extra that has high perceived value but low cost.
In some cases the third option is designed to make Option two a no brainer. So option three might be very expensive for what it is and the obvious choice is option two. Of course a few people still go for option three. This happened to me when I offered my last book as a two option deal. Option one was a Kindle version at a low price. This is what we wanted people to buy as it had hyperlinks in it and we could sell off the back of this. The other option was a hard copy version of the book. It was very expensive. The idea was to demonstrate what a bargain the Kindle version is. We failed in a few cases when people chose the hard copy with the inflated price!