Dylan Vanas breaks down a three-tier pricing model: a cheap entry point, a mid-tier that most people buy, and an expensive "moonshot" offer at the top. He argues this structure captures more revenue than pricing the mid and high tiers close together.
Chapters
Most people have their pricing model wrong. They say have three products, a small, a medium and a large. Where the medium price is super close to the large price, where people just end up going with the large. I think that is flawed advice and there's a better way. The better way is to create three products where the third one is moonshot offer, where it's much higher ticket than the other products. But basically if someone has the budget and they want to go all in, they go with that offer. The middle one is where most people usually end up and because it's more reasonable good value and it's not a starter packet and then the small packet would be basically the outs, right? If someone can't afford the middle one and they don't want to go all in for the large one, they end up going with the small package, which is kind of the catch all. I think a lot of people are leaving millions of dollars on the table by pricing their products wrong and thinking, well, if I do the confusing medium one that's close to the large, they're going to actually have people go with the large. But in fact they're missing out a lot of money because people end up just going for the small if they don't have the budget for it. So that's how I price my deals.
