20 years ago, when you were standing in line to buy a Coke at the movie box office, you had two choices: large, or small. Most people - around 80% - bought the small. Then, someone enterprising introduced small, regular (the old large), and super-sized. Now, 20% bought super-sized, 60% regular and 20% small. The super-sized buy-in was actually a surprise; no one expected buyers to drink anything that big. It was just there to add a 'bookend' effect to the large size.
If you only have one choice, then it's a choice between "yes," or "no." Nothing else to think about, so the buyer focuses on price. With two choices, they'll usually take the small because, (a) they'll save money, (b) they're playing it safe (if they don't like the flavour, they haven't wasted all that soda and money.)
With three choices, you start at the large because it's dazzling, beautiful and huge, but perhaps too expensive. Then you consider the small, but it looks puny next to the large - it appears cheap and unappealing. So, the middle is juuuust right (and a safe bet).
Now, the super-sized was created just to sell more regulars, so when you do sell it, that's a bonus. You can also charge more for your regular because the super-sized is so much more. For example, if a super-sized cost $10, and the old-large was $5, well in the new system you could easily sell the regular (the old-large) at $10.
When you offer 3 choices, it's not about charging too much, it's about giving the customer choice - and marketing is about choice. But, 4 or more choices is bad. It starts to get confusing (it is easy not to decide if there are too many choices to make; to be paralyzed by indecision) and there's no clear middle option (don't forget, people like "safe.")
When I was selling treadmills, we carried three lines: Bodyguard (made in Canada, very expensive, feature-laden but not clearly better,) Vision (well-made, higher price than a department-store model, easy to assemble and deliver, stuck to the basics and did them well) and Horizon (department-store that benefited from being on the same floor as Vision and Bodyguard.) We'd start people at Bodyguard; they'd look at the price tag and move on. Then we'd put them on a Vision. They usually loved it. They'd look at a Horizon just to check, and come right back to the vision. We were selling 8 Visions to every single Bodyguard or Horizon (8-1-1.) On a week when the Bodyguards were taken off the floor, though, the Visions and Horizons sold equally (5-5.) This WORKS.
In CrossFit, you have a good chance to fill your OnRamp program, or your coached groups, if you offer private, one-on-one training. Using our model (we also have a membership-based gym in our Box), if you frame your offerings this way:
1. Membership ($35)
2. CrossFit Group (average $10/session)
3. Private, 1-on-1 PT ($55/hr)
...most will pick CrossFit. Good coaching, WODs that aren't tailored to the individual, but good attention in a tight group. Alternately, if your Box setup is more traditional:
1. Basic Unlimited ($250/mo)
2. Per Visit ($12, guaranteed fewer than 5/group)
3. Private 1-on-1.
...you may not sell more Personal Training (but you probably will!) but you'll definitely sell more small-group sessions.
For more excellent advice, get "How To Sell A Lobster" by Bill Bishop.
Comments