A poor boy in his village has been the center of ridicule. He is asked each day to choose between a large silver coin and a gold coin. The gold coin is worth twice as much as the silver coin but the boy would always choose the silver coin and run away, leaving the crowd uncontrollably laughing.
One day, a visitor asked the boy, “Don’t you know that the gold coin is twice as valuable as the silver coin?” The boy smiled and replied, “Yes, I know.” The visitor was confused by this, so he followed up with another question “Then why didn’t you choose the gold coin? You’ll have more money if you did!” The boy then intruded “But, if I take the gold coin, the people won’t play games with me anymore. Do you have any idea how many silver coins I have collected already?”
This boy who has been made fun of and accused of being slow-minded has displayed a remarkable practical quality.
In the business world, this quality is proven to be very effective. Customers need to feel that what they buy is worth the money and effort. Just like how the boy satisfied the villagers with laughter, and also made them think that they paid so little amount as if they didn’t even lose anything at all. He sold entertainment at a cheap price.
It’s important for new entrepreneurs to know that earning fewer means of earning more. How? One way is to make the consumers feel that what you are offering them is a bargain. Make them feel they have nothing to lose in whatever aspect, without getting to the point where it seems too good to be true. Showing them that you value the quality of your product is important. For the boy, one silver coin is enough for what he offers. Is it enough? Well, the boy didn’t invest any money, yet he was able to earn something. Even if the silver coin is of smaller value compared to his other option, he’s able to get more money, little by little. So, statistically speaking, the boy earns more than enough, judging from the relationship between his investments and the profit that he’s making.
Combo meals, multiple access, and 10- and above-percent off products are just some of the examples of what most consumers would consider a bargain. Just remember to focus your investments on the deal you’re trying to offer. That way, you can still earn what you and your product deserve while having many satisfied customers as well.