The Power of Discount
Last December I wrote a blog about Limited Edition Cravings, but today I will be discussing the remarkable power of discount. Where limited edition items have the power to give them a whole new appeal, nothing beats a good old discount. All my brain can see are the percentages and euro’s I am saving. I would say my brain literally goes something like this: “$$$%%%$$$%%%”. But what is it that makes us go crazy over discounts? What makes us think that we are somehow “making” money? After all, I could have easily just made 70 euro on a 100 euro purchase when I have spotted a 70%-off deal! Read more on the power of discount on today’s blog.
Just like with limited edition products, there is a sense of urgency. If you don’t buy it now, in this case, the discount, will no longer be available. You would be missing out on a discounted price if you don’t act now. This fear of missing out is also what is behind the power of discount. We naturally want to avoid the “pain” we feel when we missed out on a good discount. This fear, injustice, and scarcity, in the end, heighten our irrationality.
Fear impairs our brain’s quality to weigh the pro’s and con’s of purchases. The chemicals in our brain also compel us to buy products that we don’t want or need as our bodies know that we will get dopamine this way. Where this dopamine is a calming neurotransmitter, we tend to buy more and more when we are under stress. One of the powers of discounts is thus that the fear of missing out on a discount offer even impairs our brain further to rationally make the decision to purchase or not. What is soothing in this story, is that we can blame the chemicals in our brain next time we cave for another discount offer and end up with something we may not really need.
Personally speaking, I also really like the feeling of saving money. I adore a purchase that much more when I was able to get it at a good price. Basically, you want to feel like you “made” extra money by buying a product that in your opinion is worth more than you paid for it. It can actually become more of a sport, treasure hunting for discounts at let’s say a TK Maxx for instance. And, I am not alone. Numerous studies indicate that discounts, even make customers happier than they would be with a purchase if they bought it full price. Then it seems, that we are even happier if we get a free gift with our purchase.
Then there is the aspect of justice or maybe even lack therefore of it. Sites like booking.com are now also showing how many other people are looking at the same offers at the same time and when the last booking was made. Everybody wants to pay a fair price. The fact that someone has just paid significantly less for essentially the same product you are about to purchase will feel unjust. To avoid getting in this situation, our brains will react immediately to make sure that we are not paying to much. If you are already looking for a laptop for instance and there is a discount, even when you were not yet 100% ready to buy you might be persuaded just to avoid the risk of paying to much the week after. We are not alone, two-thirds of customers have reported being persuaded into purchases as a result of promotions when they are undecided.
So, will you use elements of the power of discount in your projects? Or maybe even for reselling your purchases to make room for new ones online? Share it with us in the comment section below.