How Airlines Make BANK
Summary
- Airlines sell higher-priced tickets on average by offering more options.
- When presented with just economy and comfort plus, most people choose economy.
- Introducing first class, economy plus, and economy shifts more people to choose economy plus.
- This isn't about changing the product but simply presenting options differently.
- People often go for the middle, reasonable option to avoid being too cheap or too expensive.
- In your business, present your prices to make the option you want to sell appear as the reasonable choice.
Video
How To Take Action
I would suggest implementing the idea of presenting more options to improve your sales. This doesn't mean changing your products or services; it's just about how you show them to customers. Here’s how you can do it without spending much money or time:
Create Three Tiers: Offer at least three pricing levels. For a small business or entrepreneur, this could be a basic, standard, and premium option. This strategy encourages people to choose the middle option, which can be the most profitable for you.
Bundle Value: In each pricing tier, carefully bundle your offerings. Ensure the middle option (standard) appears as the most reasonable and valuable. For example, you can offer basic features in the lower tier, a mix of basic and premium features in the middle tier, and all premium features in the highest tier.
Highlight Middle Option: Make the middle option visually stand out on your pricing page. Use different colors, borders, or badges that say “Most Popular” or “Best Value” to draw attention to it.
Emphasize Benefits: Clearly list the benefits and features of each tier. Make sure the additional benefits of the middle option seem significant enough compared to the basic one, but not as overwhelming costly as the premium option.
Adjust Language: Use language in your descriptions that frames the middle option as the best choice for “most people” or “great value.” This subtle nudge plays on people's desire to make a smart, reasonable decision.
By using these simple, low-cost strategies, you can guide your customers towards the option you want them to choose, increasing your average sale without additional expense. This approach takes advantage of how people naturally think and make decisions, leading to better outcomes for your business or personal growth.
Full Transcript
here's how Airlines sell higher price tickets on average rather than presenting a comfort Plus versus an economy option most people would just take the economy option but it turns out when they offered the first class economy plus and economy more people took the economy Plus Package simply by changing what they offered they got more people to take a more expensive package and so they made more money and it changed nothing about what they said what they promised or how they sold they simply presented the prices and the options differently and you can use the psychology behind this cuz what people do is they want to find a reasonable option they don't want to be super expensive they don't want to be really cheap but often times they'll go with the reasonable middle option you can use this in your products or services that you're selling by presenting the prices in a way that makes the one that you really want to sell the reasonable appearing option
