ASH AMBIRGE

Author, CEO & Founder

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Percentage Off or Flat Rate? How to Run a Sale That SELLS.

In: Money Talk

I hate rules.

No swimming after eating.

Let him call you.

Sorry, our video library can only be watched from within The United States. (Stab. Stab. Stab.)

No white after Labor Day.

And other silly rules like stay on your side of the road.

…I kid, I kid.

That last one can slide–as long as we're not head to head, rounding a curve at the Indy 500.

But there is one rule, however, that I think is pretty nifty.

It's called The 100 Rule. 

And if you're running a business and intend on running a sale? You should know it.

The 100 rule is this:

  • If what you're selling costs less than $100, offer a percentage off.
  • If what you're selling costs more than $100, offer a flat amount off.

Why?

Because the way you frame it affects how generous the sale appears–even though it's the exact same, expressed two different ways–and in turn, affects how successful your sale is.

:: Take that $25 homemade candle you're selling. Which seems like more of a deal: 20% off, or $5 bucks? The percentage, of course.

:: Now take that $2,000 service you're offering. Now which now seems like more of a deal? 20% off, or $400? You guessed it–four hundred whoppers.

It's all about the art of positioning.

Because psychology plays a fundamental role in whether you make sales…or not.

It also, apparently, plays a role in securing second dates, so I guess we should all pay attention.

After all, you never know when you're going to have to whip out this theory when the check comes.

How can we frame this tip to appear even more generous?

Oh, I know, The 100 Rule.

Your date won't think you're weird at all.

Don't worry.

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Money. You have enough, or you don’t. Over the years, I’ve do-si-doed around both sides of that dichotomy. As a pre-teen, my mom and I sometimes had to borrow money to buy a roll of one-ply toilet paper to get us through the weekend. Scott brand. I remember it was Scott, because it was always […]

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May 1

2019

YOU AREN’T CHARGING ENOUGH. Here Are Twenty Big, Fat Reasons Why.

May 1, 2019

Andddd (drum roll!) we continue our discussion about money with the biggest, hairiest, most existential question in all of entrepreneurship: “How much should I charge?” While other people are worried about how much they’re spending, YOU have the ass-clenching task of worrying about how much you’re earning. (Let’s be honest, your ass did clench up […]

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Jan 31

2018

Fundamental Truth: You Can’t Make Money Unless You’re Making Offers

Jan 31, 2018

Offers are the lifeblood of any business. You want to make more money? Make more offers. How you do that varies, of course—to existing clients, to potential clients, to customers for your digital products and more—but there is no escaping the fact that no one’s just going to show up and put two hundred dollars […]

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Sep 13

2017

If You’re Making Less Than $300,000, WE NEED TO TALK

Sep 13, 2017

$300,000 sounds like a big fucking number, doesn’t it? But I have to tell you, that with the tools we have nowadays with the Internet, there’s almost no reason why you shouldn’t / can’t be making this in your business—WHICH SOUNDS LIKE A POMPOUS THING TO SAY, I REALIZE, BUT AT THE SAME TIME, #TOUGHLOVE […]

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Jul 14

2017

The Case For Charging Good Money (Featuring an $800 Example)

Jul 14, 2017

So here’s some crazy shit: a few weeks ago, I spent $800+ on supplements. DID YOU ALMOST PASS OUT AT THAT NUMBER BECAUSE I DEFINITELY DID. But there was good reason, however, and that good reason includes the words “hypothyroid” and “dangerously deficient” and “body full of inflammation”—which explains SO MANY THINGS, including why dropping […]

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Apr 11

2019

Ladies: DO NOT LET THEM MONEY-SHAME YOU

Apr 11, 2019

You know what’s been blowing RIGHT up my skirt lately? That women are shamed for wanting money—as if this is a bad thing. We’re shamed for charging it, for thinking about it, and for daring to create something that we—brace yourselves, folks—want money for, in exchange. There’s this unspoken code of conduct that comes with […]

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Aug 30

2016

$199 vs $200: The Difference of a Dollar is Never Just a Dollar

Aug 30, 2016

I was recently told a story about a man named Uncle Bill who went to Colombia, stayed in a hostel, and climbed the ladder into his bunk—even after the four bottles of wine. Uncle Bill wasn’t your average uncle, though. Uncle Bill was eighty-nine years old. Which sounds like a lot, when you say it out loud, […]

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