027: Choice Overload: Why Too Many Price Options Will Paralyze Your Clients

This week I want to talk to you about pricing options.

Having multiple pricing options are extremely important for your clients to have. They allow your clients to have multiple opportunities to engage with you.

When you only give your clients a single price option, it's like giving them an ultimatum….take it or leave it!

By giving them pricing options, it then becomes a question in your client's mind of…….. “not SHOULD we work with you, but HOW we are going to work with you.”

But there is such a thing as having too many choices and too many options as your clients will shut down, be indecisive or worse, look to your competition. Something I’ve learned over the years as a consultant with pricing options is there’s a sweet spot of the right amount that you want to provide to your clients during the proposal process.  

In this episode, I’m going to share with you how to determine what’s right for you and why having too many might be hindering your business growth instead of maximizing your value potential. 

So I am excited to share my thoughts on this subject with you, including some interesting studies and what the experts in behavioral economics are saying about the topic.

In this episode, I talk about:  

-What Choice overload is and how to avoid it.

-The value of having different pricing options

-The difference between System 1 thinking and System 2 thinking and which one is better

- How to know when you’re diminishing your returns with your pricing options

- The number of options that I recommend to freelance consultants 

Resources:

TSOE - Episode #237: Interview with ADP's Chief Behavioral Economist Jordan Birnbaum

Jams Study: Jam Study - Iyengar & Lepper (2000)

Connect with Paul:

The Product Pricing Roadmap

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