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Charge Just a Little Bit More

How a small price difference can lead to big returns.

Written by Sheri Jacobs, FASAE, CAE

(Image: Adobe Stock)

Excerpt from The Art of Membership: How to Attract, Retain and Cement Member Loyalty (January 2014)

If you wish to subscribe to the Harvard Business Review you have two options. You can receive 10 print issues and unlimited archive access to HBR.org for $89, which includes a full year subscription and access to over 25 years of past issues. Or you can purchase the all-access subscription for $99. With this option, you receive the same benefits as the lower price plus access to the tablet versions of HBR so that you can receive access from anywhere.

The difference in price is just $10, less than the cost to download just one issue of Harvard Business Review on your tablet.

By offering two options, and creating a very low price differential, HBR increases the likelihood of selling the higher-priced package to potential subscribers.

In many cases, if you offer two price points, your members, customers and prospects will select the lower-priced option. And that’s okay. However, you can create a Value Plus Pricing option that will drive more revenue to your organization if you make the difference in price very low.

By the way, I chose the higher priced option. I love the articles and insight in HBR, plus I want anywhere, anytime access and that means access on my iPad.

This post is an excerpt from The Art of Membership: How to Attract, Retain and Cement Member Loyalty, written by Sheri Jacobs, FASAE, CAE, published by ASAE and Jossey-Bass (January 2014).

 

Posted on January 28, 2014

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