September 24, 2016
Giving Buyers Options Can Significantly Increase Sales, Ideally We Need To Use The Power of Three
Why Use The Power of Three in Selling?
Simple. The number one is dangerous in marketing. Give people one option and they say yes or no. Too often you will get a No answer, especially if someone else is cheaper.
But the number three makes for marketing magic and certain sales. It is a form of Advanced Thinking and a very powerful negotiation tactic.
An Example of How The Power of Three Works
I often get asked to speak at conferences and in-house training days. Last week someone asked me to quote to speak at an event. They also asked others to speak and I guess we are all acceptable to them or they wouldn’t have asked us. So the only deciding factor left from the buyers perspective is price. All other things being equal the cheapest person gets the work.
So how can you become more certain to get the work? My tactic is to stop the buyer making a straight comparison based on price alone.
In my case I gave them a quote for exactly what they wanted, but then provided two other options.
The second option was the same as option one but included an add on. In this case it was to also run a QA session online. We could do this on the clients website, on Facebook .. anywhere they choose.
The third option was to offer the basic speaking session as requested plus a webinar. This could be live or recorded.
Each was priced separately and clearly the options cost more. In some cases the options will cost multiples of the basic option.
How Specifically Does The Power of Three Work?
I do the above quite often, here’s why.
We know one option doesn’t differentiate us and we then compete on price.
Give three options and, even if the buyer sticks with option one, you are seen as being more responsive and more authoritative.
But it goes further. Few people want to buy the “cheap” option that everyone offers. They don’t want to look cheap. They are most likely to go for the middle option.
Option three is less likely to be bought, although last week the buyer went straight to it and didn’t discuss the other options with me.
The thing is with three options you are really offering the equivalent of three different packages where only one was requested. It gives the buyer three chances to say yes, not one. Often they then buy one of the higher price and value packages, that they hadn’t previously considered. And, as in my recent case, they sometimes buy the luxury package they would not have otherwise considered at all.
The Power of Three works like magic in the majority of cases. It increases both the chance of a sale and the level of sale price.
Try it. You could be surprised how your profits rise.
PS Offering more than three options just confuses buyers. Avoid it in most cases.