Streamlining Pricing: Simplifying the Sales Process
Happy Tuesday everyone!
Today, we’re diving into a topic that’s often one of the first things I do when taking on a new project.
Simplifying the sales process by streamlining pricing.
The Tale of Two Pizza Places
Imagine two pizza places. Tony’s Pizzeria offers a bewildering menu:
Margherita: $10.00 for Small, $14 for Medium, $22 for large $24 for Family size
Pepperoni: $12.00 also available in deep dish for $18.
Four Cheese: $14.00, your choice of cheeses
Veggie Delight: $15.00, thin crust only. Add Artichokes for $3.
Meat Lover’s Special: $16.00. Stuffed crust $5 extra. Medium is $18, Large is $28
Build-Your-Own (50+ toppings): $.50 cents for this, $2 for that, ect
Now, consider Gina’s Pizza, which keeps it simple:
Cheese Pizza: $12.00
Pepperoni or Veggie: $14.00
Meat Lover’s or Deluxe: $16.00
Customers flock to Gina’s because her straightforward pricing makes choosing easy.
The Problem with Complexity
Like Tony’s Pizzeria, many businesses complicate their pricing. They think offering more options caters to more needs, but it usually leads to confusion and lost sales. Imagine trying to pick a pizza from Tony’s extensive menu. By the time you’ve decided, you’ve lost your appetite. The same goes for sales—complex pricing drives customers away.
Keep It Simple, Seller (KISS)
Take a page from Gina’s book and embrace the KISS principle: Keep It Simple, Seller. Streamlining pricing makes your products more accessible and attractive. Here’s how to do it:
Bundle and Conquer: Create bundles that offer value and simplicity. Think of it like a family meal deal at a restaurant—easy choices and great value.
Tiered Pricing: Offer small, medium, and large options. This taps into the Goldilocks principle—most customers pick the middle option because it feels just right.
Transparency: Make your pricing clear and upfront. Hidden fees and fine print are like finding a bone in your boneless chicken wings—nasty and trust-breaking.
Consistency: Keep pricing the same across all platforms and channels. No one likes finding out their neighbor paid less for the same service.
You don’t need to be all things to all people…. you need to be exceptional on a couple things.
In-N-Out does this exceptionally well. You want Tacos, go elsewhere. Onion rings? Don’t have them. BLT, go next door. They sell burgers and fries…. ONLY. Simple, delicious and extremely straight forward.
Why Streamlined Pricing Works
Streamlined pricing reduces friction in the buying process. It leverages psychological principles to make decision-making easier and faster. When customers face fewer choices, they’re more likely to buy. It’s the paradox of choice—less is often more.
Simplifying pricing also helps your sales team focus on building relationships rather than explaining complex pricing structures. It’s a win-win!
Wrapping Up
Take a lesson from Gina’s Pizza and In-N-Out. Simplify your pricing, bundle your offerings, and keep things consistent. Your customers will appreciate it, your sales team will love it, and your bottom line will benefit.
In sales, clarity trumps complexity every time. Here’s to a simpler, more successful sales process!
Until next time, keep it simple, keep it smart, and keep selling!
Cheers,
P.S. Have any stories about pricing simplicity or horror stories? We’d love to hear them. Drop us a line and let’s keep the conversation going!