Price Bracketing Plus – subscription page case study

I came across this example of price bracketing and thought it was inspired. Going beyond the good/better/best approach, they added a novel tactic to get the outcome they want.

Here’s the subscription page for Dollar Shave Club.

Dollar shave club detailThe center option is clearly bracketed between the super cheap version and the crazy advanced version. I normally wouldn’t consider a 4 blade razor… but it’s in the middle!

DSC 2A closer look shows their tactic for nudging people thinking about the entry level option to the 4x blade: shipping costs.

If there’s a universal truth in e-commerce it’s that people hate to pay for shipping. Especially when the shipping is more than the product itself. Dollar Shave Club asks you to fill in a shipping address in a separate step before giving you the cost too, which reinforces the idea that it’s a separate cost from the product. As far as I could tell, the cost for shipping the cheap blade is a flat $2 regardless of the U.S. address.

Dollar shave club shipping page

So $1 razor plus $2 shipping equals 3 bucks. Even though the combined $3 price is less than the other options, the thought of two thirds of the payment going to shipping each month will rankle consumers, further motivating them to order the middle, more reasonable product.

Smart!

2 Comments on Price Bracketing Plus – subscription page case study

  1. Kyle
    April 16, 2014 at 11:02 am (4 years ago)

    What about the perception of value? You might have more takers on lowest option for a flat 3 dollars. With the ultra cheep pricing shown of $1; they are pushing people towards the middle 4x option. After all, it’s worth at least 4x more; even if your only paying for 2x the blades and total two times the $ value.

    Reply
  2. Matt Hamilton
    April 23, 2014 at 4:14 pm (4 years ago)

    Agree. Why would I pay $3 for a $1 razor when I can get a fancy $6 razor for a few more bucks?

    Reply

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