Percentage Off or Flat Rate? How To Run A Sale That SELLS

Posted on November 3, 2014 by Ash Ambirge

Percentage Off or Flat Rate? How To Run A Sale That SELLS - Lioness MagazineI hate rules.

  • No swimming after eating.
  • Let him call you.
  • Sorry, our video library can only be watched from within The United States. (Stab. Stab. Stab.)
  • No white after Labor Day.
  • And other silly rules like stay on your side of the road… (I kid, I kid.)

That last one can slide–as long as we’re not head to head, rounding a curve at the Indy 500.

But there is one rule, however, that I think is pretty nifty.

It’s called The 100 Rule. 

And if you’re running a business and intend on running a sale? You should know it.

The 100 rule is this:

If what you’re selling costs less than $100, offer a percentage off.

If what you’re selling costs more than $100, offer a flat amount off.

Why?

Because the way you frame it affects how generous the sale appears–even though it’s the exact same, expressed two different ways–and in turn, affects how successful your sale is.

  • Take that $25 homemade candle you’re selling. Which seems like more of a deal: 20% off, or $5 bucks? The percentage, of course.
  • Now take that $2,000 service you’re offering. Now which now seems like more of a deal? 20% off, or $400? You guessed it–four hundred whoppers.

It’s all about the art of positioning.

Because psychology plays a fundamental role in whether you make sales…or not.

It also, apparently, plays a role in securing second dates, so I guess we should all pay attention.

After all, you never know when you’re going to have to whip out this theory when the check comes.

How can we frame this tip to appear even more generous?

Oh, I know, The 100 Rule.

Your date won’t think you’re weird at all.

Don’t worry.

About Ash Ambirge

Ash Ambirge is the owner of a no-bullshit community & mentor for business owners who roll their eyes at everyone’s “newsletter” and want to learn fresh, original ways to hijack the sea of sameness. (Located 20º north of the Strait of Eyeglaze.) She helps the lost, the confused, and the marketing anxious learn how to take their business & gracefully chainsaw through cookie cutter tactics that don’t even work (nobody wants your free goodies, or your “solutions”), and use the unexpected as a lethal sales weapon that no competitor can touch. But most of all? We help you screw “business as usual” and have fun doing business. Because if you’re not having fun, then you might as well be in jail, and jail is bad.

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