If you’ve bought a Christmas decoration recently, you’ll know that the cost to make something has little to do with the price they charge.

Yesterday I asked you how you would price a proposition to a golfer
currently shooting low 90s who wanted to break 85. Whether you would:

• book them in for their next lesson at a price, start the journey, and hope they stay committed over the 10 lessons you believe are required? The consumer would likely pay 10x (the price of ten lessons) but isn’t committed to that and can drop out.

• offer a discount for an up-front payment on 10 lessons? If you gave a 20% discount (1 in 5 free), then the consumer would pay up-front 8x (the price of eight lessons).

• sell them a 'Break 85' program of accompanied play, social learning, one-on-one lessons, supervised and un-supervised practice for a fixed fee. Let’s imagine that’s a premium of 20% on your 10-lesson cost, so the consumer is paying 12x (the equivalent of 12 lessons).

Which do you think the consumer would prefer? And reflect on why you think that.

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