Crazy Enough to Win (In Business)

Make More Money by Adding Premium Options to Your Business

March 01, 2021 John Grubbs Season 1 Episode 8
Crazy Enough to Win (In Business)
Make More Money by Adding Premium Options to Your Business
Chapters
Crazy Enough to Win (In Business)
Make More Money by Adding Premium Options to Your Business
Mar 01, 2021 Season 1 Episode 8
John Grubbs

Organizations and customers are rarely on the same page regarding value (utility) and cost.  There are often vastly different perceptions on both sides of any purchase.  Sellers tend to equate the size of the customer's wallet with their own.  Buyers, on the other hand, buy for reasons other than price more often than sellers realize.  For example, buyers often opt for convenience over price.  Finally, the difference (delta) in price between two competing options is highly subjective in any non-commodity market. 

The best strategy to maximize your opportunity amidst so much subjectivity is adding more options for the buyer.  However, too many choices can increase mental friction for the buyer and make it counterproductive.  I recommend three alternatives to ease the cognitive load.  Today, we are going to focus on one of the three options.  I call this option the premium option. 

Show Notes

Organizations and customers are rarely on the same page regarding value (utility) and cost.  There are often vastly different perceptions on both sides of any purchase.  Sellers tend to equate the size of the customer's wallet with their own.  Buyers, on the other hand, buy for reasons other than price more often than sellers realize.  For example, buyers often opt for convenience over price.  Finally, the difference (delta) in price between two competing options is highly subjective in any non-commodity market. 

The best strategy to maximize your opportunity amidst so much subjectivity is adding more options for the buyer.  However, too many choices can increase mental friction for the buyer and make it counterproductive.  I recommend three alternatives to ease the cognitive load.  Today, we are going to focus on one of the three options.  I call this option the premium option.