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  • Writer's pictureEdwina Walker

WHAT IS THE RULE OF 100

Updated: Jun 10, 2022


It's that time of year again where the sales are plenty and the offers overfloweth lol, so I wanted to do this quick post on a concept in marketing psychology called the Rule of 100, which was coined by a man named Jonah Berger ( a professor at the Wharton School of Business).

Simply put, this is the RULE OF 100:

If your product price is LESS THAN $100= show the discount as a percentage, not a number.

If your product price is GREATER THAN $100= show your discount as a number, not a percentage.

A percentage discount off an item under $100 off will always look larger than the dollar discount. For example: 25% off of $75 appears larger than $18.75 off of $75

A dollar discount off an item over $100 dollars will always look larger than a percentage discount. For example: $93.75 off of $375 appears larger than 25% off of $375

Like a lot things in life, pricing is all about perception. You can play with numbers to make people think that they're getting a much bigger discount than what they're really getting by simply following this rule that literally all the major brands use.

If you're not doing it already, I suggest applying the rule of 100 to your holiday discounts and seeing whether it positively affects your conversions!

Did you already know about the rule of 100?

Are you going to apply it in your holiday sales??

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