How to add $37,500 of revenue in one conversation

In partnership with

THIS WEEK’S LESSON

The 3-Tier Pricing Secret That Could Double Your Revenue

Most business owners overcomplicate pricing. But what if the secret to better pricing has been hiding in children's stories? Just ask my friend Will...

When executing a sales call for some education consulting, Will almost presented one price. But remembering what I taught him about “Good, Better, Best” Pricing he shared three options instead of one.

The result? His client chose the middle option, instantly adding $37,500 to the contract value.

Here's how a 19th-century fairy tale reveals why this works so well...

1. The Goldilocks Principle: Why 3 is the Magic Number

When Goldilocks broke into those bears' house (questionable decision-making aside), she inadvertently demonstrated a fundamental principle of consumer psychology.

She tastes 3 bowls of porridge — which are too salty, too sweet, and just right. She sits in 3 chairs — which are too hard, too soft, and just right. She lays down in 3 beds — which are too hard, too soft, and just right.

When you present three options to a prospect:

• Most choose the middle option

• Some go for premium

• Some pick the budget choice

When you give three options — one of them is bound to be just right to your ideal client.

2. The Premium Paradox: Higher Prices Can Actually Boost Sales

Here's something counter-intuitive: When Williams-Sonoma added a $429 bread maker next to their $279 model, sales of the cheaper model doubled. Why? Because suddenly $279 seemed like a steal.

So what does this mean for your business? Whatever you want to sell more of, position as the middle offer. Since most people will choose the middle option, you’ll grow your revenue. The premium option is there for people who want the most value. The budget option is for those whose mindset blocks them from taking advantage of what you offer — aka they are cheap.

Here’s how I’m doing it in 2025:

• The budget option: An asynchronous digital course focused on the first 90-days of a principal ($350).

• The middle “steal”: The Ruckus Maker Club — a private digital community with some courses, tools, and live coaching opportunities. ($1000).

• The premium offer: The Ruckus Maker Mastermind — a weekly peer-to-peer coaching experience. ($3500).

I want most people to join The Ruckus Maker Club. It provides ton of value, is super profitable, takes minimal effort, and scales nicely.

3. How to create your prices.

Traditional pricing wisdom says:

• The Good tier should be priced no more than 25% below the Better tier

• The Best tier should be priced no more than 50% higher than the Better tier

But as a Ruckus Maker and Category Designer, I think different:

• Positioning wise: I like the 10x jump from the good to best ($350 to $3500).

• Impulse buy: I want to create an impulse buy program with tons of value on a tangible need for my audience. $350 is the highest you can go for an impulse buy.

• Scales nicely: At $1000 a member the good offer scales in a way I like to see and is super profitable.

The Bottom Line

Most businesses are leaving money on the table with single-price offerings. The three-tier system isn't just about pricing—it's about psychology. It's about giving your customers the confidence to choose, and subtly guiding them toward your most profitable option.

Remember: Your pricing strategy is either working for you or against you. There is no middle ground.

(Coming soon: How to talk about your offers so they actually sell—and all the embarrassing mistakes I made along the way so you don't have to.)