Good, Better, Best marketing is a common technique where you present multiple comparable products with a low price, medium price, and high price option.
The goal is to give the customer the chance to choose what product, service, or package best fit their needs. As a marketer, you highlight additional benefits of each more expensive tier or option.
This might seem like a new idea, but in reality we see Good/Better/Best all the time!
For an easy example, when you're buying gasoline you can purchase Regular (Good), Plus (Better), or Premium (Best) grade. This lets you dictate how much you are spending on the product, and the quality you will be receiving at that price.
Why Does it Work?
People like having choices. When you feel like you are given an ultimatum, and you can only say “yes” or “no”, you are less likely to be confident in your choice. Also by having people say “no” to specific options lets your sales team start conversations about the remaining options.
Another reason this works is we LOVE to compare things. Think about a small purchase like buying a book. You read reviews of a few different titles, you look at a few different price options, and then you pick which has the best value. You want to be in charge of deciding what you pay, and then you can feel confident in the goods or services you received.
In giving three choices to the customer, you are allowing them to make the comparisons, and weigh their price/value options.
Assume you only had the “Better” option...
We would lose the people who would have bought if it was a little cheaper, and they are just looking for a fix that will work for them now. We also lose the people who were looking for a more luxury option.
Additionally, in giving the power of choice to the customer, they feel less of an ultimatum. It opens the doors to better discussions, and gives your sales team a better chance to sell.
For example, if you like to get 2 scoops of ice cream every time you order, knowing you COULD get 1 or 3 scoops gives you confidence in your choice, because it was what YOU wanted, not what the ice cream shop wanted to give you. (Additionally, if you realized you only had $1 on you, but you still wanted ice cream, you're in luck, you can CHOOSE to get only 1 scoop)
What to Compare
- Price - This is the first thing most customers will look at. Make sure the price difference is notable and easy to find.
- Maintenance/Performance/Quality - Highlight what changes in the product or service from price level to price level. It can be as simple as size of the product, noting different materials used, or if it is an appliance how loudly or quietly it runs.
- Warranty - Giving the consumer a longer guarantee to different products or services can help make a larger price point option seem more appealing.
- Add Ons - If you are offering any extra services or products, the customer should be able to clearly see at which level they will receive these perks. For example, if you offer next day installation/delivery, free tune-up with purchase, membership into premium club, or any other benefits these should be highlighted.
How Can I Start Selling like This?
First - Discover what your good/better/best looks like. Take your current product or service, and find ways to give additional add-ons/benefits, and find a way to cut costs to give a more affordable option.
Second - Clearly define benefits at each price level. You want to highlight the differences. If one level has a 1 year warranty and the next has a 2 year warranty make sure people know!
Third- Presentation is Key. Side by Side Comparison helps consumers easily digest what they are seeing, and helps them make the best choice. You don’t want somebody walking away feeling as though they can’t tell which features are available at which level.
Pro Tip: Acquire by Pointman lets you easily design and present proposals with side-by-side comparisons on the spot!