I was foolish. I thought that I would be the “only one who will be clever enough to shop at midnight…”
As we all know, lines were crazy for those of us who braved the retail challenge. Personally, I hate long lines, which is why you will never find me at theme parks during peak seasons. In any event, I entered the mall with a game plan.
I will visit only one store and make the best of it.
In order to maximize my shopping experience, I had to choose carefully. Window shopping can be an interesting experience. Big discounting numbers were not all that I looked at, but it sure did influence my decision.
However, one interesting thing that I learned from this experience was the unique way the numbers were presented by certain stores.
+1 Please
And no…not +1 RSVP…
I decided to take a peak in Calvin Klein because I wanted a new wallet. While I sifted through the ties and sports coats, I saw an interesting discount.
This was definitely one of those scratch-your-head-WTF-moments…
BUT, I remember seeing something like this before…
About a few months ago, I took a guided tour through Hollywood. For those who don’t live in Southern California, our dry weather make the hillside perfect kindle for brushfires. Therefore, smoking and campfire penal codes were posted everywhere.
At first, I found it quite peculiar. And for it to appear again gave me another one of those “ah hah” moments.
Why +1?
So, what are your thoughts on this? There are two main reasons. One is more obvious than the other, but both are equally powerful if applied correctly.
- It’s more than 40%! Conversely, it is just as how we perceive 99 cents to be less than a dollar.
Why do we always perceive gas prices to be $3.47 when it’s technically $3.479 per gallon? Same reason as the former.
Now, the interesting question is the second reason. Any thoughts? More importantly, how can you apply this into your own business?
This discussion will continue in the e-book, Creative Pricing and Packaging for Creative Professionals…available in your digital bookshelves this Wednesday, December 1st, 2010 at 10am! And yes, there will be a debut discount yay!
What’s next?
- If this piqued your interest, share with others via Retweet or Facebook buttons below.
- What do you think REASON #2 is? Comment below. I’ll confirm if someone gets it right.
Other Chapters
- Preface: What are You Worth?
- Chapter 1: Psychology of Choosing
- Chapter 2: Choosing is Painful
- Chapter 4: Secrets on How to Handle Discounters
- Chapter 5: How to be Fearless in Pricing
- Chapter 14: 2 Steps for Naming Your Packages
Curiously yours,
Lawrence Chan
P.S. I didn’t buy a wallet. In fact, I didn’t even get anything on Black Friday. I’m sad. In retrospect, I should have gotten new a vacuum cleaner.
Click HERE.
P.P.S. Here’s a sneak peak of my photo shoot for an upcoming ad. The Facebook Gallery will be updated here.
P.P.P.S. Some kind and humbling words from Miguel Pola who read the content of this book.
I really feel confident now… And I’m going to change things up to maximize benefits for my bride and myself.
Just like what [b]ecker was saying a minute ago, anytime Lawrence is talking, I’m always ears open. This guy is a genius. He really really knows what he’s talking about.
So whatever market you’re in – whether pet groomer or photographer – the nice thing is that you can apply [these pricing and packaging strategies] to everything.
I am completely stumped on reason number 2 and dying to know the answer. Clearly, I am going to be a great candidate for your ebook.
The answer is pretty awesome :) Just you wait!
Hummm, will there be a 41% discount on release day?
But Black Friday already passed!
My guess for #2-because it’s rememberable. It will catch your attention first, then you’ll think about it, then you’ll tell people you know about it-all the while spreading the word about the “abnormal” discount, and in turn, that business. Am I right? ;)
you rock!
I have always thought the reason had to do with sales tax. If you have an 11% sales tax, then in actuality you are only saving 30% in the end. That is my guess at any rate!
Keep up the great work Lawrence!
Putting the “1″ there sets it apart from the rest. It sticks in your head because it’s apart from the norm. It messes with you too, makes you think that it’s somehow much more sophisticated than the average 40% off.
The “1″ makes it set-in-stone. Non-negotiable (or possibly only negotiatiable by $1. It’s brilliant.
Charge $4,000 to shoot a wedding, and some clients might think they can “get you down” to $3,500 or lower. Charge $4,001, and they won’t dare to try to move your price (well, maybe down to $4,000, but who cares ;)
I agree with Victoria and Brian. The number sticks in your mind more and feels immovable. I’ve read of using the same tactic when bargaining for the same reason: the other person will get caught up on the specificity of the number and think less about veering from it when proposing a counter offer.
my thoughts on reason #2:
People may be less inclined to figure out the math themselves when its not a round number, therefore encouraging them to find out the discount at the counter, and at that do or die moment, they will just buy it.
or perhaps its just different than everyone else, and thats enough to make someone stop. Once you have someone’s attention, you dont need to be the best, you just need to be good enough to make them stop looking elsewhere.
my guess for #2 is that it’s MEMORABLE. Disneyland does the same thing in their parking structure… their speed limit is 14 MPH. Not 10, not 15… but 14. Because it makes people notice, COMMENT on how unusual it is… and then REMEMBER it.
Hey Lawrence,
Can we buy your book on Wed on iTunes?? (I’ve got a gift cards-smiles)
Unfortunately, it’s not with a publisher yet, so only through Tofurious for now.
Has it got anything to do with the psychology of having a zero in the number – which carries connotations of worthlessness? sorry, thats a fairly far-fetched idea…
Ok, I got it now. And yes, I cheated and read the ebook. :) Great stuff Lawrence!