Two-Tiered Pricing Almost Always Increases Profits

This is one of my "big" consulting tricks: let's assume you sell a "fruit-of-the-month" program at $19.95 a month. I'd keep that, but also create a "deluxe monthly basket" program with the fruit plus cheese plus wine, at $49.95. If I sell the same number of subscriptions, but some percentage opt for the "deluxe", I increase sales and profits without increasing the number of customers.

This strategy has worked for a number of my clients with newsletters or other continuity programs. And if you have a number of subscribers to be renewed on one plan, building the renewal offer around renewing as-is or opting for a "bigger" program always boosts profits; typically 30% of those renewing will move up.

Even the hotel industry has figured this out with designated "Club Floors" or business-equipped rooms at higher rates.
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