Never offer a discount (part 2)

Some of you may be familiar with the recent study done by Stanford University on how the human brain responds to perceived expensive wine versus perceived inexpensive wine.

In a nutshell, the subjects were given wines to taste and told they ranged in price from $5 per bottle up to $90 per bottle. The catch is that the wine was actually all the same. The results were fascinating.

As expected, most people claimed the more expensive wines tasted better. But the researchers took it a step further and monitored each subjects brain to see how the brain responded. And when people tasted what they thought was more expensive wine, there was more activity in the area of the brain that registers pleasure. It was all about perception and expectations.

This all goes back to the point of discounts. You are affecting peoples perceptions and expectations of your service when you are quick to offer discounts. You are telling them that you don’t value your service so why should they. And truthfully, you don’t value your service if you are quick to offer discounts. But that’s another issue for another time.

Remember, discounts are a short term fix that can create long term problems.

And in case you were wondering, here’s part 1 of Never Offer a Discount.