Balancing profit and customer satisfaction is a common challenge for entrepreneurs. Often, we look to competitors for pricing guidance and charge something similar. Or we are afraid to raise our prices for fear of losing customers.  

Creating a strategic pricing structure is the key to reaching a wider range of customers. That’s where the Three Box Pricing Model can help. This strategy involves offering three tiers of your product or service – Basic, Standard, and Premium.  

Let’s break it down:

The Basic Box:

• Position this as an entry-level option by focusing on the essential features that you provide
• It should be affordable and provide basic value.
• Ideal for budget-conscious customers or new customers

The Standard Box:

• This is your sweet spot, set your prices slightly above average and stack it with more benefits than the basic box
• It should offer a good balance of value and price.
• Most customers will gravitate towards this option.

The Premium Box:

• Position this as a premium offering, it allows you to upsell from the basic box.
• Include additional features, benefits, or exclusive access.
• This option should be enticing for customers who value the extra perks.

Some customers will opt for the basic package to save money, and others will splurge on the premium package but most people will gravitate towards the middle option. 

The beauty of this strategy is that it’s not just about making more money, it’s about providing more value and increasing customer satisfaction. When customers see a range of options, they feel confident to choose the one that best fits their needs and budget.