The psychology of a "sale"
People love sales.
For the last 5 years I have ran a 4-day sale on the weekend of Black Friday, Memorial day, and labor day weekend.
The regular cost of my product used to be $59. When I would run a sale, I'd send out a 20% coupon code to my email list, which would bring the price down to $45. I would alway make a killing during the sale. $59 was too much, but $45 was no problem...
I raised the price of my product about 2 years ago to $69. I still do the same 20% coupon code thing, which brings the price down to $55. Again, I make a killing when I run this sale...
The product that I offer is ridiculously cheap. Everyone that buys it from me agrees. People tell me all the time that they feel like they are stealing from me because of the low price I charge. For a one-time fee, I offer what other competitor sites sell spread out over 50 different "courses". My site is the "one stop shop". People are ecstatic when they find me.
But $69 is just too much...
Take $14 off that price though...and people go crazy. The sales literally do not stop throughout the weekend.
2 years ago $59 was too much as the "regular price", but knock $14 off...everyone wants to buy all of a sudden.
The sale price now ($55) is about the same as what the regular price used to be ($59)...but they buy like crazy during the sale.
People obviously want what I am selling. I have a reputation in my niche. I wouldn't make so many sales if people didn't at least have some level of interest in what I'm selling....
But $69 is too much for them. They are interested, but not $69 interested.
They will gladly spend $55 though. They are $55 interested...
After this sale, I will be raising my everyday price to either $79 or $89. I fully expect the same thing to happen...
When I run a sale next time, the "sale price" will be about the same as my current everyday price. I have no doubt in my mind that once labor day weekend comes in September, and I shoot out an email saying "hey my product is on sale for $65 if you use this coupon code"...people will buy like crazy.
$79 will be too much, but $65 will be no problem.
My point is that the actual number doesn't seem to matter. It's the fact that they are getting a coupon code. People are more interested in the saving of the $14, then they are with the spending of $45, $55, $65 or whatever...
This makes ZERO sense to me. I have never once walked out of a store thinking "wow, I just saved $130".
No. I have always thought "I just spent $450 today".
I buy stuff when I need or want the stuff. If it coincidentally happens to be on sale, cool. If not, whatever. I'm still buying anyway because I need or want it.
Apparently the majority of consumers do not think that way though. They buy things to "save money".
I have a better way to "save money". I just don't buy stuff. But that's just me though.
I'm PRETTY sure that a large percentage of these people that buy from me when I run a sale probably don't even end up using my product at all. Actually, some people have even told me this...
This means that some people literally only bought from me because the product was on sale. They weren't concerned with using the product. They didn't really want it enough to buy it throughout the year at the regular cost, but as soon as you knock that $14 off...they just have to have it.
I wonder what would happen if I made my regular price $89, and my sale price $75?
My guess is that nothing would change much at all.
This phenomenon is so weird. I understand it, but it makes zero sense to me personally.
I'm sure you guys have noticed this too if you've been into IM for a while now. I'm interested in hearing your thoughts on this!
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What if they're not stars? What if they are holes poked in the top of a container so we can breath?
What if they're not stars? What if they are holes poked in the top of a container so we can breath?
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for the freedoms weak people give away for safety
What if they're not stars? What if they are holes poked in the top of a container so we can breath?
Lightin' fuses is for blowin' stuff togethah.
What if they're not stars? What if they are holes poked in the top of a container so we can breath?
What if they're not stars? What if they are holes poked in the top of a container so we can breath?
What if they're not stars? What if they are holes poked in the top of a container so we can breath?
What if they're not stars? What if they are holes poked in the top of a container so we can breath?
What if they're not stars? What if they are holes poked in the top of a container so we can breath?