{"id":46280,"date":"2021-08-16T08:42:00","date_gmt":"2021-08-16T12:42:00","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=46280"},"modified":"2021-08-25T17:53:40","modified_gmt":"2021-08-25T21:53:40","slug":"rule-of-100","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/rule-of-100\/","title":{"rendered":"The Rule of 100: Creating Discounts and Deals"},"content":{"rendered":"\n

What is the rule of 100? How can you make a discount seem like a better deal to customers? <\/p>\n\n\n\n

The rule of 100 states that if a product\u2019s original price is under $100, a percentage-based discount\u2014for instance, 30% off\u2014will appear more attractive to customers. Likewise, if a product\u2019s original price is above $100, a numerical discount\u2014for example, $50 off\u2014will impress customers<\/a> more. If you apply this rule when creating your discount, you can maximize its attractiveness and increase the likelihood that it\u2019ll be shared.  <\/p>\n\n\n\n

Find out how you can use the rule of 100 to improve your discounts.<\/p>\n\n\n\n\n\n\n\n

What Is the Rule of 100?<\/strong><\/h2>\n\n\n\n

The key to creating amazing discounts is that they follow the Rule of 100<\/strong>. If you apply this rule when creating your discount, you can maximize its attractiveness and increase the likelihood that it\u2019ll be shared.  <\/p>\n\n\n\n

The Rule of 100 is based on research that investigated whether percentage-based discounts (for instance, 50% off) or numerical discounts (for instance, $50 off) are more effective. The answer to this question depends on whether the item\u2019s original price was above or below $100. <\/p>\n\n\n\n

If the price was originally below $100, percentage discounts are more impressive. This is because when lower prices are involved, a percentage discount seems much higher than a numerical one. For example, imagine a hat was originally $10 but has a 25% discount applied. This discount seems pretty big\u2014a quarter off! However, in numerical terms, it\u2019s only a $2.50 discount\u2014not a huge amount of money.  Therefore, this deal seems much better if you frame it as a percentage, not a numerical discount.<\/p>\n\n\n\n

If a product\u2019s price was originally above $100, the reverse is true. A numerical discount will seem higher than a percentage discount, thus making the former more attractive to customers. For example, a 10% discount on a $5000 product is equivalent to $500 off. A $500 discount seems much higher than a 10% discount, even when the two have the same value in reality.<\/p>\n\n\n\n

Exercise: Create an Amazing Discount<\/strong><\/h3>\n\n\n\n

One of the ways to give your product or service practical value<\/a> is to create and apply an amazing discount. In this exercise, learn how to ensure that your discount is amazing.<\/p>\n\n\n\n