A couple of weeks ago, my fiancée and I attended a Google City Experts party and danced for the very first time! In front of people! It was electrifying. For over a decade, we huddled in the corner with other wallflowers, usually snacking on hors d’oeuvres. Not at this party …

google christmas party

I have to give our boogying skills and confidence credit to dance lessons. The idea of learning to dance never crossed my mind until a Groupon deal appeared in my inbox. I seized the opportunity for four private classes and one group hoedown. Now, we are both mildly proficient with waltz, foxtrot, rumba, hustle, and tango.

Dance Studio Sales Pitch

When the Groupon sessions were exhausted, the studio manager approached us for the sales pitch. Julie and I were ready and anxious to continue. Below was what was presented.

  • $300: 2 Private Sessions, Unlimited Public Sessions
  • $600: 4 Private Sessions, Unlimited Public Sessions
  • $900: 6 Private Sessions, Unlimited Public Sessions
  • $1,200: 8 Private Sessions, Unlimited Public Sessions

Immediately, I scratched my head in perplexity. For those who have read my Pricing and Packaging for Profit (2nd Edition), they’d immediately understand the failures with this presentation.

Where was the incentive to upgrade?

All else being equal, why would any logical person buy anything but the first plan? After the sessions expire, that person could simply re-enlist for another two-sessions without any loss.

Remember that consumers, including you and me, have a very difficult understanding value unless compared to something else. For example, which eggs would you buy? The below scenario is real (not Photoshopped).

understanding value

Therefore, when it comes to your own businesses:

  • What is the ideal price point for your clients?
  • How are you incentivizing them to book that “perfect” package?

In the end, none of the options jumped out to give us a feeling of scoring a “great deal,” so we left without continuing our lessons. I’m a little bummed by it. All of our instructors were phenomenal (one having been on Dancing with the Stars), but the business side of things were unflattering.

Do you dance? What’s your favorite style? Comment below!

Dance the night away,

Lawrence Chan

P.S. A kind note from Kerri about my Pricing e-book.