We’re going to expose a “myth” that is so closely held, it’s even possible one of our Office Panthers (who have never been on an airplane) are unaware.
Namely, the myth of cheap flights.
Some time ago, we put paid to the generally non-factual claim that a 50-minute flight is somehow better and faster than a 5-hour drive.
This is something different.
It goes something like this:
- You need to fly somewhere.
- A major airline will get you there and back (round trip) for about $350. They throw in a free checked bag and a bag of peanuts. Solid!
- One of the minor “cheap” airlines offers you a round trip of “only $129”.
- You take the cheap airline.
- You found out that in addition to that “cheap” $129, you have to actually pay extra to use your credit card to book (no joke), pay to print your boarding pass, pay at least $35 for your CARRY-ON each way, pay for a beverage that any other airline provides for free, pay more for checked luggage if you pay close to the actual flight, etc. (Source)
- Oh, and if THEY cancel your flight, YOU are screwed.
- Before you know it, you could easily be paying $350 for that “cheap” flight anyway – or so close to it that all the additional hassle has a negative ROI.
But you still opt for the cheap flight, even though you know at some level it will save you little in money and cost you in aggravation.
There’s a simple marketing principle here, called low ball.
We at The Morning Adam™ refer to it as
Frontloading The Price And Backloading The Value
Here’s how it works.
Say you have a product you want to sell for $500. Show your audience the $500 price tag upfront and they may balk because it’s so “expensive”.
The way around that is to have a “basic” and a “deluxe” version, where the deluxe version is an upsell.
Applying this, we would do the following:
- Sell the primary product for $297
- Then, add a pre-sale upsell that positions several (at least 5) additional components for just $200 more
- The prospect can opt to buy the “package” for $497, or just the basic version for $297
We round down to $497 simply because $497 “isn’t $500”. If you get one more sale as a result of this, you will literally cover the $3 reduction across your next 165 sales (497 / 3).
So just do it.
In All Of Our Tests, At Least 85% Of Prospects Go For The Upgrade
Here is some sample language for the top of your upsell page, that has worked like gangbusters for us:
(headline) Wait… Before You Get Started!
First of all, congratulations on your wise decision to [INSERT BENEFIT HERE] with your investment in [NAME OF PRODUCT]
Before you complete today’s order, I just want to make sure you have everything you need. I have found that many of my customers who [APPROPRIATE PHRASE TO REPLACE “BUY THIS”], come back later asking for [BENEFIT STATEMENT OF THE UPSELL YOU ARE ABOUT TO PRESENT].
For that reason, I would like to save you time and money right now and show you the opportunity to “double down” by adding
(then lead into your upsell)
Take it home with you!