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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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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It’s never just about the money coming in; you have to consider the money going out.  When you take on a job, sure, you might earn $5,000. But what’s the cost of earning it?  If you have to forfeit 3 other projects (and your favorite Wednesday night TV show) for a combined total revenue of […]

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2019

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The other day I urged women: do not let them money shame you. Do not! Even though they’ll try to. Even though, because you’re a woman, you’ll be deemed “delusional” and “scammy” and “self-serving,” the more money you charge—even if it’s the going rate. And yet, when a man charges the same thing, they are […]

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2019

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

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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2019

How to Be a Bitch About Money: The 8 Money Policies Every Freelancer NEEDS to Avoid Getting Burned Like a Ham Sandwich—Including the Rock-Solid Refund Policy That Slays

Eight-thousand dollars. Eight-thousand dollars! EIGHT-THOUSAND DUH-OLLLL-ERS. That’s the (actual) amount of cold, hard cash one designer recently had charged backed by a client—and her credit card company sided with the client. Mother of ouch. More than that, though, this kind of crisis can be absolutely devastating to a freelance business that’s operating paycheck to paycheck, […]

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May 14

2015

SWEATY ARMPIT ALERT: 67% of the people that were about to give you money…don’t.

Ever think you’ve got Alzheimer’s, or am I the only asshole running around forgetting the word “lollipop?” Let me tell you, there’s nothing worse than forgetting the word “lollipop” in front of a stranger. It’s not like it’s some academic word one could be forgiven for forgetting, like idiosyncrasy—which I feel like is forgivable. I […]

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Jun 9

2015

Making Money is Not as Hard as Most People Make It

There is a distinct and profound difference between people who make money and people who don’t: the money. Hard, cold, beautiful bendy stacks of cash. I know there are a lot of people that say money is evil and your nostrils will catch on fire if you want anything other than world peace, but usually—and pardon […]

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2015

Business Lacking Direction? Start With the Money.

Imagine you’re seven years old, and you’ve never cooked anything before, so help your Fisher Price kitchenette. But suddenly you’re home alone, and you’re tasked with making yourself a meal. So naturally, you do what any seven year old would do: You get a big pot, and you start putting your favorite things into it. Pepperoni pizza—fucking […]

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