Black Friday for Non-Retailers
Today is Black Friday. It’s a good thing for our economy, and a powerful view into human psychology.
Retailers that have mastered the art of buying psychology have enormous lines of shoppers braving the elements to get in when the doors open.
It’s brilliant and it’s frightening.
Two factors are at play:
The door buster sales, such as a $700 Laptop computer for $189 are so incredibly attractive that shopper’s greed will get them out of their homes and into the stores at unreasonably early hours.
2. Fear of Loss
Limited time offers and limited quantities mean that the best deals will be snapped up by the most dedicated shoppers.
In your business, think about how you can combine these two elements. Remember that you make money on the follow on customers, not on the original deal. So the original deal must be phenomenal.
I once sold a half page ad in the San Diego East County Yellow Pages on eBay for $150. The going rate for that ad was $5,000. We generated a lot of excitement but lost money on the first ad. The advertiser, an estate buyer, renewed for 5 years and eventually was spending $15,000 per year with us.
Combine a limited offer with fear of loss, and see what happens.