Want to Increase Your Profits? Try Offering Your Most Expensive Product First!

Are you missing out on profitable sales because you’re offering your customers the cheapest option first? It might seem like good customer service to start with the most affordable product or service, but this simple habit could be costing your business money.

One of the easiest ways to improve profitability is to change the order in which you present your products or services. It’s a straightforward strategy that can make a real difference to your sales results, and it’s one I explore in my book, A Year Of Profit.

Stop Assuming Your Customers Want the Cheapest Option

Many business owners and salespeople believe that price is the most important factor in a customer’s buying decision. As a result, they often lead with their cheapest product or service, assuming this will make the sale easier.

But customers don’t always buy on price alone.

Quality, brand reputation, after-sales service, convenience, delivery times and loyalty can all influence a purchasing decision. In many cases, customers are willing to pay more when they understand the additional value they’re receiving.

The challenge is making sure they know what’s available before they make their decision.

Instead of automatically recommending the cheapest option, why not start by showing customers your premium offering and explaining its benefits?

You may discover that more customers are interested in your higher-value products and services than you expected.

A Simple Sales Strategy: Offer the Most Expensive First

Let’s consider a simple example.

Imagine a customer walks into a store looking for work boots. The salesperson has three options available:

Basic boots – $79: Warm, dry and fit for purpose.

Wool-lined boots – $98: An option for customers working in colder conditions.

Premium boots – $139: Extra-thick leather, steel caps and a 24-month guarantee.

If the salesperson starts with the $79 boots, the customer may decide that these are sufficient without ever considering the benefits of the premium pair.

However, if the salesperson introduces the $139 boots first, explains their features and benefits, and then outlines the alternatives, the customer has a much clearer understanding of the choices available.

For someone working in demanding conditions, the added durability, protection and guarantee might make the premium boots the best investment.

The key is not to pressure customers into spending more. It’s to help them make an informed decision by showing them the full range of options.

Your customers can’t choose the benefits they don’t know about.

A Real-World Example: Filling the Higher-Value Rooms First

I once worked with a motel owner who was frustrated because their two highest-value rooms weren’t selling, while their $120 studio rooms were consistently full.

The problem wasn’t necessarily the rooms themselves. It was how the accommodation options were being presented to potential guests.

I suggested that the owner begin by offering the most expensive rooms first and briefly explaining the benefits of each room type.

The $185-per-night rooms included Sky TV, a spa bath, lake views and an additional bedroom. The next option, at $150 per night, also offered a spa bath and lake views, but had a queen bed and no second bedroom. The entry-level studios were $120 per night, with a standard shower bathroom and no lake view.

By explaining these differences and presenting the premium rooms first, the motel gave customers a better opportunity to appreciate the additional value.

After just one week of trialling the strategy, the owner reported that all their higher-value rooms had been filled first.

The result was a simple change in the sales approach that helped improve profitability.

The lesson? Sometimes, you don’t need a new product, a major marketing campaign or a price increase. You simply need to change how you present what you already offer.

This Strategy Works Beyond Retail

Although this approach is particularly useful in retail, it can be applied to many different types of businesses.

For example:

Hairdressers and beauty businesses can introduce premium treatments or services before presenting standard options.

Accommodation providers can highlight their best rooms before discussing more affordable alternatives.

Trades and service businesses can explain premium packages, additional services or longer-lasting solutions before outlining their basic offerings.

Professional service providers can present comprehensive service packages before discussing more limited options.

The important thing is to identify the differences between your offerings and communicate the benefits clearly.

In my coaching experience, even businesses with a great range of products and services can miss opportunities because their team members don’t consistently explain the value of their higher-priced options.

How to Put This Strategy Into Practice

The good news is that you don’t need to overhaul your entire sales process to get started. Here are three practical steps you can take.

1. Identify Your Higher-Value Opportunities

Look at your products and services. Where do you have different options at different price points?

Identify which offerings provide the greatest value to customers and which generate the strongest profit margins. These are good places to start exploring the strategy.

Get your team involved in the discussion. They often have valuable insights into the questions customers ask and the reasons they choose particular products or services.

2. Develop a Simple Sales Script

Create a short, natural script that explains the features and benefits of each option.

Don’t simply list prices. Explain what the customer gets for their money and why they might value those additional features.

For example, rather than saying, “This is our most expensive package,” your team could explain how the premium package provides additional support, greater convenience or a more comprehensive solution.

The aim is to make the value clear, not to overwhelm the customer with information.

3. Train Your Team and Monitor the Results

Once you’ve developed your approach, make sure your team understands how and when to use it.

Encourage them to present the premium option first, explain the benefits and then outline the alternatives. They should still listen to the customer’s needs and recommend an appropriate solution.

Monitor the results over time. Are customers choosing higher-value options? Are your margins improving? Are customers happier with their purchases?

Keep refining the approach based on what you learn.

Consistency matters. A good sales process only delivers results when your team uses it regularly.

The Bottom Line: Give Customers the Opportunity to Buy More Value

Improving profitability doesn’t always require more customers, more advertising or longer working hours.

Sometimes, the opportunity is already sitting in front of you.

By changing the order in which you present your products and services, explaining the benefits of your premium options and training your team to do the same, you may uncover a straightforward way to improve your sales and profitability.

Remember, this isn’t about pushing customers towards the most expensive option regardless of their needs. It’s about making sure they understand the value available to them so they can make the right choice.

A small change in the way you sell could make a meaningful difference to your bottom line.

Want to Improve the Profitability of Your Business?

As an ActionCOACH business coach, I help business owners identify opportunities to improve their performance, strengthen their sales processes and build more profitable businesses.

If you’d like to explore practical strategies you can put to work in your own business, I’d love to hear from you.

Email me at markdaniels@actioncoach.com, and let’s talk about how you can get more from your business.

Mark Daniels | ActionCOACH Business Coach and Author of A Year Of Profit