POS SOFTWARE

So we have here an item with three sizes, cups of soft drink.

The small cup cost is $4

A large cup cost $8.50

A medium cup costs $8

The positioning is not an accident here as the purpose here is to sell the large cup so we want it in the public mind. 

Now studies show many people will go for the large cup since it is *only 50 cents* more than the medium cup. The only purpose of the medium cup is to boost sales of the large cups. To make this strategy work, you need to be able to offer people three alternatives to similar products. The two cheaper options must be priced lower than the target. The marketing idea is that the target is better value or quality for only a little extra.

For a more detailed example and studies done on this idea, see the Decoy effect in the Wikipedia here.

This strategy is widely used. You can use it for just about anything eg pens, cards, dog food, cosmetics, etc.

Give this idea a go and as always, let me know how it goes.

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