The key is three tiers, and three is the target. More than three and you get decision paralysis, less than three and you cut yourself at the knees, and here’s why:
There are by and large three types of buyers.
The “Fuckit buyer“
They want the top tier because they want it. They want the best, at whatever cost. Money is no object.
The “Budget buyer“
They are pinching pennies which, to no fault of theirs perhaps, they just don’t have the budget… but they want YOU. Give them your most affordable option.
Most folks don’t want the cheapest, or the most expensive. Buyers also use the first price they see as the “anchor”, hence you list a premium package before the middle package. (This tactic is also used at restaurants with a priced bottle of wine they hardly ever expect to sell; its primary purpose is to anchor every other bottle of wine.)
Whatever is in the packages almost doesn’t matter, just begin with your historically most popular package the middle of the three. My pricing structure is as follows: $3.5k $2.5k $1.7k (the industry average Wedding DJ price in my area is $1.1k-$1.5k, ala greater NYC metro)
Most folks book my middle package, a smaller portion book the budget package, and a rare rare few book my highest rate. Can you tell I have a Psychology degree?!
Here’s my conversation almost word for word, I’m sure you could use any reason for why you want a reduced rate. One 5 minute phone call = $40. I’m sure you can follow this exact script for ANY subscription service you pay for.
Hi [name of rep]. I have an existing Gigmasters account and have an annual renewal coming up in a few days that I had a question on.
“Ok, what’s your Member ID or account email?
“Ok great am I speaking to Daniel?”
“Ok how can I help?”
Well I see the renewal coming up is $269 and I wanted to know if there was any flexibility in that, my marketing budget this year is pretty tight.
“Ok hold one moment, let me see if there’s anything I can do”
“I checked with my team and we don’t have any promotions currently running but I can offer a 15% discount on your renewal, does that work?”
Sound like you’re in a good mood by smiling, be polite, and generally pleasurable to chat with. Use their first name. People like hearing their name. Make them want to help you!
Companies really don’t want to lose business. Taking time to call about retaining their services shows you’re interested and it won’t take much to keep a happy paying customer!
You can upload either a Word Doc or PDF, then add input fields, initial blocks, signature fields, and auto-populated dates.
For the amount of business I was doing at the time this was a godsend.
Pros & Cons
Relatively cheap ($120/yr)
Stores contacts for use between recipient fields
Can send a copy of your contract to as many emails you need
Has a solid app to access contracts at any time
Clients don’t need an account
You get notified when clients are viewing your contract
Limited to 5 contracts per month
Unable to edit errors within input fields (which wastes envelopes)
Unable to bulk download contracts (must be done individually)
Setting up templates suck; fields don’t line up sometimes
No consistent dashboard showing # of used contracts that month
It works, it’s cheap, but it can be very annoying when you have a busy month and have to wait to send out a contract to nail down that client.
There are CRM’s that include digital contracts in their cost with no monthly limitations (Ex. 17hats) so my advice is to shop around and find a more holistic solution. If you just need a few contracts a month right now in your business it will work, but realize you’re going to have to migrate to another service after you grow which can be a pain.