As business owners and marketers, we build awareness, create impressions, and show our customers that we have a solution to their pain point. Eventually, we get to the moment where our customers have to evaluate whether they want to buy what we are selling. This can be a scary moment. It may feel like you will either make the sale or you won’t. But actually, there is a trick you can use to turn this into a moment that sparks further conversation and interest. Today, we will talk about how to increase sales with levels of offerings.
Making a sale is not about throwing down the gauntlet. Unless you have exactly one product or service at exactly one price point, you have options. It’s often easier for a customer to choose between options than to make an all-or-nothing decision. This is why giving them levels helps increase sales.It's often easier for a customer to choose between options than make an all-or-nothing decision. Click To Tweet
During the prospecting phase, you tend to learn about your customer’s pain point and what is driving their need. However, in order to solve that problem they have to spend money. Until you know their budget, you are missing key information.
One angle that works with some personality types is to ask point blank if they know their budget, letting them know that with that information you can tailor an appropriate solution within that figure. Not everyone will want to answer that question. Not everyone will know the answer to that question. When you don’t get a clear number, you can go ahead and present levels of offerings.
Whatever your business, it is a good idea to present levels of offerings during a sale. Three levels if you can. This lets you show the customer the simplest resolution, then a middle level, then the top offering. Your best product is assigned the highest value. The most basic product has the lowest cost. The middle product sits somewhere in between.Whatever your #business, it is a good idea to present levels of offerings during a sale. #smb Click To Tweet
This is a psychological approach. Your goal is to increase sales with these different levels of your offerings, and there are a number of reasons why this approach can work in your favor.
- Statistically, you are driving the customer to the middle option. They might not want to feel like they are taking the worst solution or the most extravagant. People tend to lean towards whatever is in the middle.
- You are inherently showing that you are open. Instead of leading with your one and final offer, you are demonstrating that there are a number of ways to skin this cat. You are giving your customer control by allowing them to give you feedback and choose for themselves among the range of options.
- Yet, you are still maintaining control. All the levels you present are already approved by you. You already know your margin and that these offerings are viable for you. You aren’t discounting yourself out of a profit. You are allowing the customer to find the right type of option at the right price.
- By presenting options, you are encouraging conversation. It’s not just “take it or leave it.” Once you start to see which way the customer is leaning, you can ask more questions and present more tailored solutions. You may end up upselling or downselling from where you started. You are now partners in the sale, working towards the same goal AND the same budget. Your conversions will be better if customers see you as a partner in the sales process. Some types of customers may have perceived you as an adversary before, so this is one way to turn it around.
In all the marketing we do, at some point we get into the sales process. Knowing how to approach the conversation about budget is part of being successful in this process. One way to improve your conversions and increase sales is to have levels of offerings that are right for your business. Give it a try next time you are negotiating and see how it works for you!
If you don’t know where to start in figuring out the levels of offerings for different types of customers, I can help! Check out my Marketing Funnel Worksheet here. It will guide you through setting up the levels of your funnel so you can see more clearly what options to present when you are selling. This exercise will pay dividends, allowing you to convert more of your audience and improve your sales.