Williams Sonoma added an upgraded version of a really popular bread maker. But, it actually lead to an increase in sales from the cheaper one – about 50%. Researchers speculated that when consumers consider a particular set of choices for a product they can tend to rest on what they would call “compromise choices.” Choices that fall between what they need, at a minimum, and what they could spend at a maximum. When people have 2 choices of options that they could spend on, they will often choose the cheaper. But, if a 3rd is offered. Then compromised choice is the moderate one. So, in WS, the cheap one (which wasn’t actually “cheap”) seemed more reasonable.
Or the example is the wine list: Generally, most places will list the highest end wines at the bottom of the list. However, if they listed the expensive at the top – then the next cheaper will seem like a compromise choice. But, that 2nd alternative is still pricier than going cheapest first.
Offer the expensive one first, so that the mid-range seems more reasonable. Also, just because the expensive is not selling – doesn’t mean it doesn’t have a place in your offering.
Try adding a luxury, upgraded version of your product to create a relational value proposition. How can you build another version that is higher price – but includes enough extra service, options, or product that it still kind of makes sense. You might not sell many of them. However, it can make the normal, 70% as expensive product that has 80% of the features seem like an even better deal.