Psychology of Pricing and Having Different Clinic Price Points

Clinic Price Points Matter

Offering different clinic price packages to suit people’s varied aspirations and budgets is a great strategy. It’s a way of bundling things together so that you make more money from each client but also ensuring that they get more value. Normally I’d suggest that you have three packages, the top one being the ultimate, the middle one being the one people mostly take, and then a cheapest package.

Why three? Well, what you’re likely to find if you offer just two packages is that the majority of people will go for the lower-priced one, whereas if you have three typically the middle-priced one the more popular. Psychologically, people don’t want the cheapest. Trust me on this one, and try it for yourself to see.

Different Clinic Price Points

This was demonstrated in a home products store that was selling pots and pans. Originally they only had a choice of two sets – a cheap one, and a more expensive one. As we’d now expect, the cheap set sold the most units. The store then introduced a very high-priced set of pots and pans, which pushed the previously ‘expensive’ ones down into second place. The result? What was once perceived to be ‘expensive; was no more, and sales rocketed – in fact they became the preferred option for shoppers. Why? People wanted the high priced ones but were content to settle for the middle priced, and they also perceived that they were better value.

And that links into the importance of appropriate pricing. If your prices are too low, some people will believe that you simply can’t be that good and will go to a more expensive rival who’s delivering the same or even less value for money from you. Think about it – would you trust a £5 hair stylist, or would you feel safer trusting a £50 one?

Different Clinic Price Points Will Sell More

As an extension of this pricing philosophy, you may wish to look at introducing a VIP club. You would select your best clients (and make sure that there are a limited number of people and that it’s by invitation only) then organise a launch day where you invite them all together and offer a dedicated and very special package. So, for example, they may receive £200 of treatments each and every month but only pay £150 a month. You get the regular income, they get to be pampered regularly, and they feel that they’re part of a very special ‘tribe’. Make sure that they pay by direct debit every month though – this is about regularity and ease.

Clinic Price Points Make Sense

Your VIP club can then cover your clinic costs and take the pressure off your cash flow. Just 20 members in your VIP club will see £3000 coming in on the first of every month before you’ve even done anything, and that can be of real assistance to many clinics and that’s just one of the clinic price points you should have.

By Alan Adams The Clinic Coach