{"id":74,"date":"2020-07-15T14:15:24","date_gmt":"2020-07-15T14:15:24","guid":{"rendered":"https:\/\/salarydistribution.com\/2020\/07\/15\/increase-your-products-price-and-conversion-rates-with-value-stacking\/"},"modified":"2020-07-15T14:15:24","modified_gmt":"2020-07-15T14:15:24","slug":"increase-your-products-price-and-conversion-rates-with-value-stacking","status":"publish","type":"post","link":"https:\/\/salarydistribution.com\/affiliate-marketing\/2020\/07\/15\/increase-your-products-price-and-conversion-rates-with-value-stacking\/","title":{"rendered":"Increase Your Product\u2019s Price and Conversion Rates with Value Stacking"},"content":{"rendered":"
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<\/i> <\/i> <\/i> <\/i> <\/i> <\/span> 4.5\/5<\/span> (20) <\/span> <\/span><\/p>\n

\u201cCompetition is for losers\u201d \u2013 Peter Thiel<\/a><\/em><\/p>\n

I love studying strategy and competition.<\/p>\n

I\u2019ve learned that it\u2019s rarely a good idea to compete on having the lowest price.<\/p>\n

Imagine that you have a product or a service, and your only advantage is that you\u2019re cheaper than the competition.<\/p>\n

What happens if you have the lowest price, but then a competitor is able to set their price lower than you?<\/p>\n

What if you\u2019re selling Yoga mats and Amazon comes out with their version, or your supplier decides to start selling the products themselves?<\/p>\n

There\u2019s no advantage to being the second cheapest in the market. <\/strong>Being too cheap can also hurt conversion rates since people associate the product with being low quality.<\/p>\n

Being the cheapest works if you have the volume to support it like IKEA or McDonald\u2019s.<\/p>\n

For most companies, it\u2019s much, much better to compete on value<\/strong>. Value means to keep increasing the usefulness of your products to your customers.<\/p>\n

Offering more value means customers are willing to pay a higher price. Charging more means you have more margins when you\u2019re trying to acquire a customer.<\/p>\n

There isn\u2019t much differentiation in the e-commerce space these days. Most supplements and beauty products are from the same factories. Most physical products are coming from the same factories in China.<\/p>\n

You can kinda<\/strong> differentiate by having pretty packaging or adding a logo to the product.<\/p>\n

But there\u2019s one way you can substantially add more value to your product that not many people are using.<\/p>\n

You can do it<\/a> by turning your product into an offer.
<\/strong>
Doing this will increase your conversion rates, offer more value to your customers, and you\u2019ll be overall more profitable. And the best part? It doesn\u2019t take much effort.<\/p>\n

Note: Hat Tip to Russell Brunson for elaborating on this concept.\u00a0<\/em><\/p>\n

What\u2019s the Difference Between a Product and an Offer?<\/h2>\n

A product is a single item.<\/p>\n

An offer is a product plus additional items that create value.<\/strong><\/p>\n

Here\u2019s an example.<\/p>\n

You\u2019re shopping for a brand new BMW 3 series.<\/p>\n

To keep it simple, we\u2019re going to assume that the cars are exactly the same.<\/p>\n

If two car dealerships are offering the same BMW, your decision is going to boil down to the price, reviews of the dealership, and maybe your relationship with the salesmen.<\/p>\n

What if one car dealership increased the value by turning it into an offer? What if they added additional items that didn\u2019t cost them much?<\/p>\n

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If everything else is equal, which dealership are you going to buy it from?<\/p>\n

Car Dealership B. <\/strong><\/p>\n

It\u2019s a win for the customer because they\u2019re getting more bang for their buck with free car washes and servicing.<\/p>\n

It\u2019s a win for the Car Dealership because they got the sale. Not only do they immediately profit, but getting the sale gets their foot in the door for future<\/em>\u00a0sales.<\/p>\n

That\u2019s a real-life example.<\/p>\n

But how does this apply in the world of e-commerce?<\/p>\n

Sarah is interested in purchasing protein powder. She specifically wants to purchase the ones designed for females<\/p>\n

She does a few searches and has narrowed it down to two choices: Fitmiss<\/a> or Ladyboss<\/a>.<\/p>\n

Let\u2019s take a look at what Fitmiss is offering.<\/p>\n

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It\u2019s a straight forward purchase. 2lbs of protein for $27.99.<\/p>\n

The large majority of e-commerce transactions are done like this.<\/p>\n

Now let\u2019s see what LadyBoss is offering.<\/p>\n

If Sarah is making a direct comparison, then she\u2019ll compare the reviews and ingredients to see which Protein is better.<\/p>\n

But wait\u2026it\u2019s NOT <\/strong>a direct comparison.<\/p>\n

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<\/strong><\/p>\n

LadyBoss has created an offer.<\/p>\n

Sarah could go with FitMiss and get the protein.<\/p>\n

Or Sarah could go with LadyBoss and get the protein + Recipe book + 28 Day Challenge Access + Workout Plan eBook + Facebook Group Access + Free Shipping.<\/p>\n

Which offer helps Sarah solve her problem more? LadyBoss.<\/p>\n

It\u2019s no longer a fair comparison.<\/strong>\u00a0FitMiss is offering only protein while The LadyBoss is offering protein plus a ton of free goodies.<\/p>\n

Turning something into an offer means:<\/p>\n