Back in his pomp Lord Sugar was a genius at developing products for the mass market…

One of his many successful strategies was to create the perfect product for the time at a disruptive price point, and then bring out an enhanced model priced at a reasonable premium.

As with their first computer. The Amstrad CPC464:

Lord Sugar priced it at £199 with a mono screen, and then offered a colour screen version for £299. 90% of sales were for the colour screen option at the higher price.

The entry model price attracted people on mass, but when they learned about the enhanced model for not that much more, they bought this instead, because they perceived it as better value.

It was a win win for both the customer and Lord Sugar, as the customer got a higher specified product for an acceptable amount more, and Amstrad made some extra profit.

We’re trying something similar with our monthly subscription ‘office in a box’ service…

The base product is a laptop with lifetime warranty bundled with Microsoft 365, at a disruptive price point of £24.99 (+vat) a month.

And for a little extra you can add a multi-function printer with unlimited cartridges or even an internet office phone licence, which turns your mobile into a virtual office location.

…could you adopt Lord Sugar’s entry level and enhanced pricing strategy to create a win win too?