Raptor Explains: The Good-Better-Best Pricing Strategy!
It's not a glorified ladder. If you know you know ;)
The G-B-B pricing strategy classifies products and services into "good," "better," and "best" tiers, respectively, based on price. Customers are enticed to spend more money on premium services because they receive more and better features as they go up the pricing tiers. The idea is based on the assumption that consumers will prioritize convenience over cost. Considerations like the product's quality play a role in their final choice. Although seemingly straightforward on paper, success depends on setting prices at just the right level to encourage buyers to spring for the more expensive bundles. The principles behind the Good-Better-Best price structure are laid forth, and its many advantages are enumerated.
It's possible that petrol stations will serve as our pilot project. varying grades of petrol have varying price tags. On the other hand, online software vendors and streaming services like Netflix and Spotify offer both bundled and a la carte options for their products. Other strategies that can be employed in tiered pricing include creating "premium" or "VIP" packages using the "Good-Better-Best" concept.
Psychology's Place in the Good-Better-Best Strategy
In case you were wondering, the Good-Better-Best strategy gives importance to how customers view prices. This tactic is occasionally employed to gain new clients or outsell rival businesses. Because they each take use of users' cognitive biases in a unique way, these strategies are all successful.
The Good-Better-Best marketing formula typically increases consumer spending. This is due to the fact that they are now compelled to think more intricately about upgrading because they must now weigh both the expenses and benefits of doing so in addition to whether or not to do so. Customers are more likely to make a purchase when offered more options, but they also take longer to make a decision. The only decision left is how much to spend now that they have made the decision to buy.
Written by Muqaddim Jawad Noor
