Discount: An intuitive way of anchoring

In many industries, the way to go is:

This way, they’ll go to their boss and say “Boss, I got us a GOOD deal“. You want them to say that.

[And they still won’t buy (but this one is for another email).]

What was described here is an intuitive way of anchoring. To make the offer higher, and with the discount (by default), the “deal” will appear nicer for the customer.

Makes sense. Feels right. It has logic.

Until it doesn’t.

A few reasons why:

• You train your customer to always ask for a discount. They feel entitled to it just because. After all, YOU gave them by default.
• With a more experienced buyer, they’ll push you down till you can’t really go lower. Bible-paper thin margins.
• You deprive yourself of presenting options that make sense for your customers.
• You can’t capture most of the value you help create.
• It’s random. You apply it to everyone. When it works, you’re a genius. When it doesn’t work, they’re idiots.

It all drives to the bottom, to be exchanged easily, and to comply to whatever ridiculous wants from the customer.

But there are ways to do different, and have you and your customer delighted.

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