Peak Your Profits: Reduce, reply, reward
So how does reduction lead to addition? Here’s how.
Your product sells for $365, and it’s a “consumable” to be used daily. So on an annual basis, the investment is $365.
Yet by using the “Reduction Rule,” the investment is only $1/day. And $1/day sounds very affordable. Especially if it’s providing your customers with enhanced value, increased gain or reduced loss.
The “Reduction Rule” is used on a regular basis for a variety of products and services. For example, newspapers, magazines, online and other information or subscription services continually ask if you can afford to be uninformed and out-of-touch by not subscribing to their publications or services.
What they’re really asking you is, “What’s the cost of ignorance?” Therefore, for only $.08 a day, you can have the world at your fingertips. The “Reduction Rule” is also used to sell, for example, a $1,000 product or service in four easy payments of only $250.
One of the key advantages of the “Reduction Rule” is that the reduced or diminished dollar reference makes it easier for the buyer to justify value in his or her mind. The decision-maker is able to better rationalize his or her decision.
With Super Bowl LII only days away in Minneapolis, it reminds me that...
On Jan. 26, 1986, I watched my beloved Chicago Bears beat the New England Patriots 46 to 10 at the Super Bowl in New Orleans. How much did I pay for my ticket? $150. But here’s how I rationalized, what at the time, I thought might have been an irrational, impulsive, spendthrift decision.
I said to myself, “This is a lot of money to spend to simply attend a football game. However, it’s an extremely reasonable investment for an experience of a lifetime. And if I live for at least another 50 years following this game, that’s only $3 a year! Actually, that’s less than a penny a day for a cherished memory. There’s nothing left to think about. It’s my civic duty to watch the Bears in the Super Bow!”
As you can tell, my decision had nothing to do with football, yet instead, history.
I used the “Reduction Rule” on myself...and it worked.
Jeff Blackman is a Hall of Fame speaker, author, success coach, broadcaster and lawyer. His clients call him a "business-growth specialist." If you hire speakers, please contact Jeff at: 847.998.0688 firstname.lastname@example.org. And visit jeffblackman.com to learn more about his other business-growth tools and to subscribe to Jeff's FREE e-letter, The Results Report. Jeff's books include; Stop Whining! Start Selling!, (an Amazon Bestseller) and the revised 4th edition, of the bestselling Peak Your Profits. You can also stay connected with Jeff via Facebook, LinkedIn and Twitter: @BlackmanResults