When to discount using $ vs. %
The Rule of 100 will change how you discount forever.
Here’s how it works.
For discounts on products that are less than $100, promote your discount as a percentage off.
- For example, if your product is $20, promote 25% off rather than $5 off.
For discounts on products above $100, use the dollar amount rather than the percentage.
- So, if your product is $1000, it’s better to say they get $250 off rather than 25%.
The rule of 100 works thanks to how we perceive numbers.
At...
Magnitude Representation of numbers
Magnitude Representation is a grand name for one of my favourite bits of numbers psychology.
When it is represented with more characters, we process a number as larger.
I don't only mean only 3,000,000 vs. 3,000. These are different values.
I mean when the same value is represented differently, like 3,000.00 vs. 3k
You can see the difference in this bank's ad campaign.
On the left, how they displayed the cashback offer in year one.
On the right, the same promo in year two, but see how...
Which digit do you want people to focus on?
Ending your price with “9” is a tidbit of pricing psychology that has entrenched itself in business folklore.
Why? Because $1999 seems better than $2000, and $12.99 better than $13.
But why does it seem better?
It may have a lot to do with the direction the digit is pointing. You see, 9 points to the left, as does 1, 2, 3, 4 and 7.
5 and 6 are right-facing whereas 0 and 8 are centered.
This digit-directionality (Coulter, 2007) is yet another consideration when it...
