Chapter 8: The Multi-Option Framework
The most common mistake consultants make is offering only one pricing option. Multiple options transform the conversation from "yes or no" to "which one."
What You'll Learn
- Why single-option pricing fails
- The three-tier structure that works
- The 5-10x pricing difference rule
- How price anchoring increases deal size
The Single Option Trap
The Problem
Offering only one pricing option creates a binary yes/no decision for the client and limits your ability to demonstrate different levels of value.
Single vs. Multi-Option
| Single Option | Multi-Option |
|---|---|
| Forces binary decision (yes/no) | Creates "which one" decision |
| Client focuses only on price | Client compares relative value |
| No price anchoring | Higher options create anchoring |
| Can't gauge client budget | Reveals budget range and priorities |
| Leaves money on table | Captures full value potential |
By offering multiple options, you: 1. Create pricing anchors where higher options make mid-tier seem reasonable 2. Allow clients to choose their preferred investment level 3. Demonstrate the full range of ways you can provide value 4. Avoid leaving money on table with clients who have larger budgets
The Ideal Three-Tier Structure
Option 1: Base Package
- Addresses core client needs
- Demonstrates understanding of the problem
- Provides measurable value at accessible price point
Best for. Teams that need expert guidance but have internal capacity
Option 2: Value Package (Recommended)
- Builds on base with additional deliverables
- Offers higher probability of success
- Typically priced at 2-3x the base package
Best for. Teams ready to move quickly with hands-on support
Option 3: Premium/Partnership Package
- Comprehensive solution with maximum support
- Highest probability of success
- Includes elements client may not have considered
- Typically priced at 5-10x the base package
Best for. Maximum speed, lowest risk, highest certainty
The 5-10x Pricing Difference Rule
Key Pricing Principle
Your options should have dramatic price differences, not incremental ones.
Why Big Jumps Work
| Incremental (Avoid) | Dramatic (Use) |
|---|---|
| $10K, $15K, $20K | $10K, $35K, $100K |
| Too similar, invites line-item comparison | Clear value tiers, easy decision |
| "What's the extra $5K for?" | "Do we need the premium approach?" |
| Analysis paralysis | Clear differentiation |
"If I asked you what you could offer at 5 times the price, it forces you to think creatively about how to deliver substantially more value."
The Psychology
When prices are too close (like $800 vs. $900), clients spend too much time scrutinizing line items rather than understanding fundamentally different value propositions.
When prices are dramatically different ($10K vs. $50K), the conversation shifts to: "Which level of service do we need?"
Creating Meaningful Differentiation
The airline analogy:
| Class | Service Level | Price Jump |
|---|---|---|
| Economy | Basic transportation | Base |
| Business | More comfort, amenities | 3-5x |
| First | Premium experience | 8-10x |
| Private jet | Ultimate customization | 50x+ |
Each serves the same fundamental purpose (transportation) but offers dramatically different experiences. The price differences are significant, not incremental.
Differentiation Examples for AI Consulting
Base Package ($15K) - AI feasibility assessment - Technical recommendations - Implementation roadmap
Value Package ($50K) - Everything in Base, plus: - Prototype development - Team training workshop - 30 days of implementation support
Premium Package ($150K) - Everything in Value, plus: - Full implementation assistance - Ongoing advisory (6 months) - Custom model development - Dedicated expert network access - Executive briefings
How to Think About Premium Options
"There have been times where I have a $100,000 Option C. It's high enough they won't pick it. But it's also high enough that if they do pick it, I'm not annoyed about working more."
The Premium Option Serves Two Purposes
- As an anchor: Makes the middle option seem reasonable
- As a genuine offer: If they choose it, you're excited to deliver
What Goes Into Premium?
Think about what you could offer if budget constraints were removed:
| Standard Deliverable | Premium Addition |
|---|---|
| CLI prototype | Full frontend application |
| Your expertise | Access to your expert network |
| Remote delivery | On-site workshops |
| Standard timeline | Accelerated delivery |
| Implementation | Implementation + hiring support |
| Project | Project + retainer |
Presenting Your Options
The Script
"I've prepared three ways we can work together:
Our Advisory engagement at $15K/month ensures you have expert guidance throughout.
Our Comprehensive engagement at $50K includes hands-on implementation, which typically accelerates timelines by 3-4 months.
Our Premium engagement at $150K includes access to our full expert network and guarantees delivery within your aggressive timeline.
Which approach best aligns with your urgency and internal capabilities?"
Key Elements
- Name each option (Advisory, Comprehensive, Premium)
- State the price clearly
- State the key differentiator
- Connect to their stated needs
- Ask which aligns with their situation
When Clients Push Back on Price
Don't drop price—adjust scope:
Strategy 1: Move Value Down
"What would it take for that price to make sense? Perhaps we could include some elements from the premium package."
Strategy 2: Adjust Scope
"We could reduce the scope to focus on your highest priorities while staying within budget."
Strategy 3: Adjust Timeline
"We could extend the timeline to spread the investment over more months."
The Cardinal Rule
"Never discount without removing value, and never add value without increasing price."
Real Pricing Examples
Small Engagement (COO as buyer)
| Option | Price | Includes |
|---|---|---|
| Advisory | $8K/month | Monthly meeting, async support |
| Implementation | $25K | 3-month project, team training |
| Full Package | $50K | Implementation + 6 months advisory |
Enterprise Engagement (CRM company)
| Option | Price | Includes |
|---|---|---|
| Advisory | $20K/month | Weekly meetings, strategic guidance |
| Comprehensive | $75K | Hands-on work, prototype, team integration |
| Premium | $200K | Full implementation, expert network, hiring support |
Action Items
-
Create your three tiers: Define what's included in each level of service for your main offering.
-
Apply the 5-10x rule: Make sure your options have dramatic price differences, not incremental ones.
-
Write your presentation script: Practice how you'll present all three options and connect them to client needs.
-
Prepare scope adjustment responses: Have ready answers for price pushback that adjust scope, not price.
-
Define your "excited to do" premium: What would make you genuinely happy if a client chose the highest option?
Key Takeaways
- Never offer a single price—always present 2-3 options
- Multi-option transforms the decision from "yes/no" to "which one"
- Use dramatic price differences (5-10x), not incremental jumps
- Each tier should offer meaningfully different value, not just "more hours"
- The premium option serves as both anchor and genuine offer
- Never discount without removing value—adjust scope instead