Increase Profits By Presenting The Same Offer Different Ways
After completing the purchase of 1500 envelopes for a pre-tax total of $199.98 (about $0.13 each or $66.67/500) the following "Bonus Buy" was presented:
It seems like a really great deal – one that makes you stop and think about it.
But why? The same offer had been presented and rejected just moments earlier in the checkout process. Instead of ordering 1500 envelopes for $179.99 the option of 2000 envelopes for $217.49 could have been selected. It wasn't, even though the additional 500 envelopes would have cost the same $37.50 presented in the "Best Buy".
Why was the offer rejected previously? Because only 1500 envelopes were needed. So why is it so interesting now?
- When presented this way (as just $37.50 for an extra 500) as opposed to 2000 for $217.49 vs 1500 for $179.99 the offer benefits from the anchor effect. $37.50 for 500 envelopes just feels like a great deal when 1500 just cost almost $200.
- It very effectively employs scarcity and invokes the fear of loss by stressing that it is only good for ten minutes. The fear of loss is a very powerful motivator – studies show that people are twice as upset at the thought of losing something that they are pleased at the thought of gaining something. Perceived scarcity is also very powerful and an effective way to increase demand.
- It exploits confirmation bias. At this point you are no longer a prospective customer considering purchasing envelopes from this vendor, you are an existing customer that already has purchased envelopes from this vendor. And if a smart person like you considered those envelopes a good value at $66.67/500 then they must be a great deal at $37.50/500!
This is a really great example of how the same price, presented differently, can be much more persuasive.
It is especially relevant to florists in a time when delivery charges frequently cost $20 or more. That $20 is a substantial part of the total purchase, and it is always worth pointing out that one can get twice as many flowers without paying fully twice as much.