A young man stops by and asks to buy one watermelon. “That’d be 3 dollars,” says the old fella.
The young man then buys another one, and another one, paying $3 for each.
As the young man is walking away, he turns around, grins, and says, “Hey grandpa, do you realize I just bought three watermelons for only $9? Maybe business is not your thing!”
The old man smiles and mumbles to himself, “People are funny. Every time they buy three watermelons instead of one, yet they keep trying to teach me how to do business…”
I mean, if you labled it 1 for $3, 3 for $9, it will just make people who want to buy 3 do the 3 for 9 and other while other will just get the 1 for 3. The idea is to get the people seeing that the 3 for 10 is a bad deal and they decide to do the 1 for $3 three times, thinking they got themselves a better deal, when in reality, the seller just got more sales.
It's a similar idea to making the small and the medium overpriced while having the large be not that big of a difference in price compared to the others, making more people incentive to buy the large
I guess the assumption is people like to show off how clever they are so will buy extra melons to prove the point. If they needed three anyway, he's still sold three mellons.
The people are telling him to improve his business model, but they bought three watermelons. He made a sale, likely because people felt like they were “cheating the system”, making the odd pricing a bit of a selling point for the opposite reason people would typically think.
People purposefully buy 2 more watermelons (regardless of if they need them or not) just because they “save” or got a nice “deal”
Joe: I only need one watermelon, it’s $3 for one. $10 for three.
Joe thinks: Hmmmm, if I buy 1 watermelon 3 times, I get it for $9. I save $1.
Joe buys 1 watermelon, 3 times.
Joe: Nice! I saved me $1.
Joe spends $6 more to save $1.
Concept can be applied anywhere. Just because it’s on sale or you’re scoring a deal, people tend to spend more than they initially planned to “maximize” a deal.
Guessing you don’t upvote comments… upvotes = free awards (not totally sure of the ratio though.)
Edit: thanks for the correction, apparently random accounts get the ability to give free awards and it’s not related to upvotes. Thanks for the education! I assumed it was upvote related because there was one week I didn’t have any free awards but once I got more engaged and upvoted more things I got the ability.
I miss the days when you could get a single award and get enough points/credits to spread the love for weeks. Those really were the good ol’ days (of Reddit)
They know, it makes you a lot more likely to buy the 3*100 separately to feel like you got a good deal, even if you weren't gonna buy that much to begin with.
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u/0-29 8h ago
You guys buy Reddit gold?