Watching Profits Float Away
In seminars I am often asked by business owners about the thought patterns of potential customers. My answer is usually treat people in a consistent manner and limit the decisions to be made.
One case that comes to mind is a local river tube rental business. There are several such tube rental businesses in the area and each seems to compete with prices. This particular shop rented float tubes by size for $15, $20 and $25.
My suggestion was simple. Make all tube rentals $20. The people who pay $15 would not really notice paying $20 and the customers lost to another business on $25 tubes would stay because that extra $5 would be staying in their pocket.
The results were immediate and dramatic. The $20 one price for all drew people away from the multiple price shops and there was never any hesitation or price bartering from customers.
They simply pick out the tube they want and pay one fixed price.
People want to get on with having a good time and would generally rather not have to make decisions on such matters. Simple designs appeal to customers.
This with the SOCIAL BOOKMARKING CONSOLE