When Does $15 Off Not Cost $15?

by CraftyCoach - Norm Lanier on November 1, 2008

I got a question from one of my followers on Twitter who asked what was the best type of sale to have? The answer is to give high value away that cost very little. Here’s what I mean, many crafters will have a sale where they offer a 10% off, dollar off, free add-on like free shipping. I would argue that there is a much better option.

Let’s say you are having a sale and you have a work that cost $100. Now if you have a sale that is 15% off, the percieved value to the customer is $15 and it cost you $15. If you have a discount of $15 off any item over….. the percieved discount to the customer is $15 and cost to you is $15. Now let’s say that you offer free shipping, the percieved value is the cost of shipping and it cost you that same amount. In all of these scenarios perception equals cost.

There’s one more option which I believe is the best way to go. Let’s say that you offer an item worth $15 free with any item over … The perceived value of the customer is $15 but your actual cost could be significantly less. The other big advantage of this method is now the customer has two of your items to show off to friends instead of just one.

Offering specials can be a great way to motivate customers to buy, think about how you can offer maximum value at minimal cost.

{ 8 comments… read them below or add one }

1 Jennifer 11.01.08 at 9:10 am

what a GREAT idea!! I will have to try this soon!

2 thebeadedlily 11.01.08 at 9:21 am

This is a great idea! Awesome and I’ll try it out next week!

3 soaprehab 11.01.08 at 9:32 am

I love this idea, thank you!

4 Uniquecommodities 11.01.08 at 10:30 pm

Excellent!

5 ashley 11.03.08 at 9:20 am

great idea, i never thought of it like that before.

6 ash 11.03.08 at 1:12 pm

Great idea - I never thought of that. Most of my items are $15 - but I could offer a free cozy or something. I’ll try it during my next SNS sale.

7 Leanne Lonergan 11.06.08 at 9:11 pm

I love this, I love this, I love this ! Makes so much sense!

8 Lisa 11.19.08 at 2:14 pm

This is quite brilliant! I’m going to try this too. I’m glad I found you via twitter! Great blog.

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