How To Structure Your Sales Part 2
An “Accommodating Buying Curve” allows you to sell to your target audience independently of their income.
You can offer multiple tiers of payment methods along with discounts. Car insurance is a great example of how this is done.
-If you were to pay the 6month policy up front in Full you get a 15% discount.
-If you like to pay half up front and half the next quarter you also get a 10% discount.
-If you’d like to pay monthly, you pay the full price each month.
Each tier and payment term may be better for a certain level of income and incentivize customers to pay more of the policy up front. Recouping your marketing coat faster and giving you the end on time value of money.
This can also be made to be “stickier” by having a monthly recurring payment after a very large initial investment. You saw another way to set this up in part 1 with sunk cost.
The larger the disparity between the upfront investment, and the recurring payment the longer the customer is likely to continue on your subscription or service plan.