Sales Technique: The Three Boxes Strategy

Introduction

• Objective: Increase customer purchases with a simple, powerful sales technique.
• Key Concept: Adjust your offer to give customers more choices.
• Technique: The "Three Boxes" strategy.

Traditional Selling Approach

• One Choice: Customers decide "yes" or "no" based on price.
• Problem: Focus solely on affordability.

Two Choices

• Example: Movie theaters offering large and small soda options.
• Result: 80% choose small to save money, 20% choose large.
• Limitation: Only two choices still limits decision making.

The Three Boxes Strategy

• Add a third option to shift customer focus from "if" to "which one?"

• Contrast Pricing: Three Options

  • Small (low value, unappealing)
  • Middle (most compelling, desirable for majority)
  • Large (premium, over-the-top)

• Implementation Example: Movie Theater

  • Small, Regular, Jumbo sizes.
  • Outcome: 60% choose middle, 20% choose small, 20% choose large.

Benefits of Three Choices

• Encourages selection of middle option.
• Middle option offers "perceived" best value.
• Premium option serves as a decoy.

Practical Application in Business

• Example: Car Wash Offerings

  • Basic shampoo ($15)
  • Shampoo + interior vacuum ($25)
  • Super detailing ($200)
  • Most customers opt for the middle option.

• Membership Levels: Silver, Gold, Platinum

  • Silver: Minimal features.
  • Gold: Balanced value (target choice).
  • Platinum: Maximum features, high cost (decoy).

Key Takeaways

• Pricing Strategy: Contrast pricing helps guide consumer decisions.
• Choice Engineering: Offer enough options to guide choice, not overwhelm.
• Goal: Majority opt for the middle offer, maximizing perceived value.

Conclusion

• Selling is about offering choices.
• The Three Boxes allows customers to feel in control while subtly guiding them towards the most profitable option for the business.
• A well-structured choice framework increases sales and customer satisfaction.