The Comfortable Middle: Make it Work for Your Business

My wife and I at at a restaurant tonight. I wanted a glass of wine (Pinot Grigio).

Here were the restaurant's p.g. offerings:

1. Bella Sera (Italy) $5.75
2. Canaletto (Italy) $7.00
3. Chateau Ste. Michelle (Washington) $8.00

I like to drink Pinot Grigio, but I wasn't familiar with any of these. So guess which one I chose?

I picked the middle one, just like many shoppers will do. The middle one is safe. It's not wasting money like the most expensive one might be. It's not risking getting a low quality wine like the least expensive one might be. The middle one just seems safer to the cautious buyer. And a lot of consumers are cautious. Tonight, I was one of them.

The restaurant we dined at did two things right to maximize the opportunity with the cautious shopper:

1st thing: They offered 3 Pinot Grigio's. Had they offered two, I probably would have picked the least expensive one.
2nd thing: Their middle price one was closer in price to the most expensive one than it was to the least expensive one. To maximize sales to the cautious shopper, raise the price of your middle option. It will still feel safe, yet increasing the price a smidgen will provide you with extra revenue. $1000, $875, and $700 is better for your business than $1000, $750, and $700.

Not every shopper will be a cautious shopper. But those who are often feel safest in the middle. Make the middle work for them and you.

Please share your comments by clicking on "comments" below.

Skip Anderson is the Founder and President of Selling to Consumers, a B2C sales training and consulting company. Subscribe to the free Selling to Consumers Sales Tips Newsletter.

Comments

[Ian Brodie]

That was a really interesting post Skip - I'm always intrigued by these clever little bits of consumer psychology.

Ian