Pricing Psychology
The brain functions as a risk-averse decision-making machine that defaults to the cheapest option when presented with only two choices, but introducing a third, higher-priced option shifts buyer preference to the middle option.
Offering three product tiers ($30, $50, $100) instead of two ($30, $50) increases average order size as buyers gravitate toward the $50 middle option rather than the lowest price point.
Customer Segmentation
10-20% of buyers will always select the most expensive option seeking best quality regardless of price, making a high-end product essential to capture this premium segment.
80% of buyers make purchase decisions based on correct positioning rather than price alone, with only 20% being truly price-sensitive and unwilling to buy due to cost.
Sales Positioning Strategy
When salon owners object to high prices, position the product as exclusive for salons with high-end clients by confidently agreeing on premium pricing while emphasizing superior benefits and asking if they serve customers who want the best quality.