Introduction
Would you like to convince more of your customers to buy more from you, more often? Today, I’m going to teach you a simple but powerful sales technique that’s been proven to work in my various companies. It has nothing to do with gimmicks or your sales script; it’s all about your offer. This strategy is called “The 3 Boxes.”
The Concept of the 3 Boxes
When you offer only one choice, customers focus on whether they want to buy it or not. However, when you introduce multiple choices, their focus shifts to which option they want to buy.
The Power of Three Choices
- Two Choices: When given two choices, such as a small and a large option, 80% of customers tend to choose the smaller option to save money.
- Three Choices: Introducing a third choice (e.g., small, regular, jumbo) changes the dynamic.
Contrast Pricing Strategy
When you offer three options:
- Small: Make it a less attractive, wimpy choice.
- Medium (Regular): Make it the most compelling option.
- Large (Jumbo): Make it an expensive, luxurious choice that a few might select.
Real-Life Examples
- Movie Theaters:
- Small Soda
- Regular Soda (formerly Large)
- Jumbo Soda
Customers are more likely to choose the regular option.
- Car Wash:
- Simple Shampoo: $15
- Shampoo + Vacuum: $25
- Super Detailing: $200
Most customers will choose the $25 option.
Implementing the 3 Boxes in Your Business
- Create Three Boxes: Small, Medium, and Large (or Silver, Gold, and Platinum).
- Feature List: Offer fewer features in the small option, most features in the medium option, and additional luxury features in the large option.
Conclusion
Selling is about giving your customers choices—not too many, not too few, just the right amount. The 3 Boxes strategy helps customers feel like they are making an informed decision, ultimately leading to more sales.
FAQs
What is the 3 Boxes strategy?
It’s a sales technique where you offer three options to customers, making the middle option the most compelling.
Why does the 3 Boxes strategy work?
It leverages contrast pricing and helps customers focus on which option to buy rather than whether to buy.
Can this strategy be used in any industry?
Yes, it can be applied to various industries, from retail to services.
How do I create compelling offers?
Make the small option basic, the medium option highly attractive, and the large option luxurious and expensive.
What are the benefits of using this strategy?
It increases sales, improves customer satisfaction, and enhances perceived value.
