Optional product pricing entails offering your primary or basic product at a lower price and charging a premium price for add-ons or extras. These extras enhance the client experience and elevate it to a higher level of luxury. The corporation sells the product’s accessories at a higher price and makes a bigger profit on add-ons. For example, selling a plane ticket for a low price but charging extra for luggage, a window seat, or maybe food.
The major reason for a corporation to use this pricing strategy is to have the buyer spend more money to improve their experience with a product or service. This pricing strategy has grown in popularity over time.
When it comes to optional product price, there are two main considerations:
The primary product that your firm creates. This will be offered at a lower price, and the vendor will try to persuade the buyer to add extras. When these accessories are added to the base product, they will improve the user experience.
These products increase the brand’s visibility. When a consumer walks in to buy a product, they frequently acquire services or items that are linked to it. A vendor must be very astute in this situation. A buyer may be turned off by his pricing or his selling abilities. When pricing the item, the corporation must consider its market and who its target audience is. The vendor should also promote the product’s USP and the benefits of adding the accessory to the product to persuade customers to purchase it.
Optional product price has drawbacks as well. The biggest downside of optional product pricing is that your customers must purchase these items or your organization will suffer a significant revenue loss. Second, you should deliver on your promises. If your consumer does not believe that your item enhances the experience, they will go elsewhere.