ASH AMBIRGE

Author, CEO & Founder

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Just The Tip: Is Your Package Big Enough?

In: Just The Tip,

Confess.

You’re reading this because the title made you think of male genitalia.

(…And now you’re thinking about how weird the word “genitalia” sounds.)

I know, I know. I tried to avoid it, but really, I can’t. Because today’s tip is about packaging your service or product offerings, so why be modest? I’m not even modest on Sundays.

If you’re in business, about to be in business, or hallucinate that you own a business, then you’ve probably had the following conversation with yourself at least 45 times:

Soooooo….. *fumbles teacup*…..does it make more sense to sell my services or products separately, à la carte? And that way I give people options? And that way I can upsell and cross-sell like a SELLING MACHINE, and once they see the value, they’ll surely be convinced to purchase more, and then I’ll have repeat business, and then everybody prances off to the dude ranch happily ever after?

 

…or should I bundle things up and offer a few packages? And that way I can consolidate and make things simple? And that way I can be more useful overall? And that way I earn more revenue up front? And that way I can come up with names like, “The Foxy Lady Package.” <—Kidding. If you ever name anything The Foxy Lady Package, I give up.

You’ve done this mental ping-pong, right?

Confess. 

(That’s twice I got you.)

Well ping pong no more. (Mostly because you can only say “ping pong” so many times before it gets weird.)

Neuroeconomics expert George Loewenstein has put in an awful lot of elbow grease to discover that, turns out, people are lazy fucks.

And do you know what happens when people are a bunch of lazy fucks?

They don’t want to have to think too hard about things. They don’t want to have to do the work of choosing, putting the pieces together, whether or not they’re missing something, and what it all costs separately.

They’d rather purchase a package deal.

Why?

Because first of all, it reduces the mental tension of have to decide, and second, when they buy a package, they’re only feeling the pain of parting with their cash once. One big wham, bam thank you…madam.

But when they have to purchase separately—think your “additional services,” complete with price list—they’ve got to feel the pain of parting with their cash (and making the mental decision to do so) over and over and over and over again.

And that hurts, Charlie.

Spending money hurts, even when you want to spend it. You’ve always got that naggy little jerk in your head going, “Should I really be spending this?”

Am I right? Isn’t that what that little freak says, all day long, every day?

So today’s just the tip: Try enhancing your package. Develop a package offering. Have a little fun with it. See what happens. 

Because it makes sense. 

And the next time you doubt it, just think of how annoying it is when you go to those restaurants where the $30 entrée doesn’t come with any sides except the lump of meat itself. Unless you want to suffer without mashed potatoes for the next two hours of your life as you watch every other jerk in the place forking clumpfuls of delicious, buttery, whipped starch into their big, fat, annoying mouths, you’ve got to order it separately. And pay separately, too. Same goes for the veggies. The restaurant might play it off like they’re trying to give you options, and yet, you feel like you’re getting nickel and dimed the whole way through.

We always knew good things come in small packages.

But now we know that small business offerings?

Benefit when they come in big ones.

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76 thoughts on "Just The Tip: Is Your Package Big Enough?"

  1. Such a good post!!

    Question: what are your thoughts on using pricing to position your packages / products? I have two business coaching packages. One is a 3 month minimum commitment to help pull them out of the daily grind and launch their businesses. I take them by the hand in working out everything to do with their business, palm them off to a website designer/copywriter and then help them launch. It will take longer than 3 months, I know, but the full length depends on how much time they give to working it all out (hence the 3 month MINIMUM). Let’s call this Package X.

    The other is a 1 month package for people already in the game but not playing it at the level they want to. Whilst Package X is a more structured process, this package (which we shall call Package Y) is more about what they come to me and say, “I got nooooooo clue who my audience really is.” And i work with them on whatever they’re stuck with.

    So say I charged $300 for Package Y, I don’t know whether I should just charge $900 for Package X (for 3 months), should charge more so it looks like it’s the better package or less so it looks like they’re getting a discount of sorts or just price them totally how I want haha.

  2. maxwell ivey says:

    first, you only got me once because as a guy your headline didn’t have me thinking of genetalia. But i do hear that gremlin asking me about spending money. I listen to him a lot. 🙂 but your post has me thinking. I have ben telling people that they can add a banner ad to their listing for $50 for the run of the ad. Maybe instead I should announce that for $50 they get a traditional ad plus the banner ad. Of course, I don’t charge for the ad as i work on commission. but i know how you say its all about the language we use. and i finally launched my indiegogo campaign to fund taking the youtube show out on the road. so far all I have received have been emails from people wanting to sell their services to help promote the campaign. To which I reply that if i could afford high paid fancy consultants i wouldn’t be using crowd sourcing. thanks for the post and take care, max http://bit.ly/1jjmRxD

  3. Andrea Jordan says:

    Great article Ash! I’ve set up my business to assist business owners (new and enduring) implement their ideas. After many years as a corporate lawyer I saw businesses failing because they weren’t great at executing their ideas. I currently offer two packages. The first – Strategy Sessions – is a taster package of two sessions, and unlimited email, to get to the heart of my client’s challenges and get their thoughts clarified. We’ll then put an action plan together so they move forward again with confidence. The second – Kick Start – is a 3 month investment which allow my clients to kick start new possibilities in their business. This includes an initial planning sessions, fortnightly follow up sessions and unlimited email. I can be found at http://www.learndiscoverbefree.com