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independence2 unconnected · 1 more author in those circles
applies to

b2b and consumer, no audience needed

confidence

high

evidence

7 claims · 3 articles · 4 receipts

window

2011-02-282023-09-18

2 builders who never spoke to each other

Publish the price and stop discounting quietly

Comparison against other shoppers is the strongest driver of perceived unfairness, so a buyer who discovers someone else paid less is a buyer who resents the purchase. Publish every plan's price, put any volume discount on the site and the invoice as a stated rule so bulk cannot be used as leverage, and refuse the negotiation entirely. An empty promo code field on checkout is the same mistake in miniature: it tells a ready buyer a cheaper price exists and sends them away to find it.


The method

  1. 01

    Never let a buyer see evidence that other customers are paying less, because comparison against other shoppers is the strongest driver of perceived price unfairness, and unfairness drags down overall satisfaction with the purchase.

  2. 02

    Take the promo code field off your checkout page: a buyer who was ready to pay list price now knows a cheaper price exists and leaves to search for a code.

  3. 03

    Treat a missing discount as an abandonment risk, not a minor annoyance - a large share of shoppers walk away rather than buy at full price.

  4. 04

    If you want to discount, either give the reduction to everyone for a fixed window or hand out dedicated referral URLs that carry the price silently, so nobody feels excluded at checkout.

  5. 05

    Publish your prices openly and refuse to discount, including on large enterprise orders, so there is nothing to haggle over.


What it returned

  • 1989

    Xia, Monroe and Cox found other-customer comparisons the most salient source of perceived price unfairness; Oliver and Swan (1989) tied fairness perceptions to purchase satisfaction.

  • 40%

    A Google study found over 40% of shoppers had left a retail store without buying because they had left a coupon at home.

  • Oliver and Shor found that asking for a code when the shopper has none hurt perceived fairness, satisfaction and completion versus the control.

  • Suggestion from Brad Sorensen.


Sources


the second source

Three plays a week, for the phase you are in

No roundup of links, no news. Three tactics more than one builder arrived at separately, with the numbers each one returned and the disagreements left in.

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More in pricing

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the second source

Three plays a week, for the phase you are in

No roundup of links, no news. Three tactics more than one builder arrived at separately, with the numbers each one returned and the disagreements left in.

963 corroborated plays to draw from · 3 a week

One email a week. Unsubscribe in one click, and the address is used for this and nothing else.