Surprisingly just last month, we received emails on questions related to what we have written on the title.
Should we upgrade our business and charge it to our clients?
That is one of the many questions that we believed related to each other.
We are unique, but the experiences that we have makes us more different compared to those who are not yet experienced.
So in terms of upgrading or building new visionary products, the question is, will you charge your company or the product bundle good to clients?
Some experts that we manage to discuss with this topic views the idea as “membership” in which they will be required to renew over time as the company added cool features in its product or services.
We know that the topic that we will talk ignites your curiosity, so we will be talking it out here.
Here are our notions:
- First, if you tend to give new products or even features away, obviously your clients will come again to expect those items. But later, when you finally decide to raise prices, this will make your customer upset. The price increase that has been imposed will not be justified by the features, because it has become a part of the previous package. Meaning you just gave in features and as result, you will have difficulty in raising additional price.
- Second, we assume that some clients value your capabilities more compared to other clients. In this way, we should look for possible ways for you to get them pay on different prices. (You are in position to do this.) All you have to do is to you have to “talk organization out of just giving it away”, remember that your organization has vision and it should be followed.
The best way to do it is by talking to them with a tactic for them to create vision on pricing. So here is our recommendation.
By just creating this three product tiers, you can clearly put your market in segment. The idea allows you to serve your clients with low willingness in paying while generating revenue from them especially for those who have higher motivation to pay for something.
The very best way to get there is by offering a single product or what you called the “good”, and then you add some new special features or capabilities and label it as “better”.
Lastly, adding more great attributes making it as the “best”. (The higher the customer pays, the better the feature they will experience).
The low based price with special add-ons based on pricing. By staring a low price as base for every functional product that you have, you can get potential adoptions.
Our goal here is to create a user base product, and then you can sell extra add-ons in the market. The major advantage of offering add-ons is that they are categorized in what we called “Will I?” products.
This means that people are not that sensitive with the price, in other words they will end up getting charge for each add-on they want in which this can make you money.