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Valuable Sales Lesson from A Yankee’s Cap


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Last Saturday, my wife and I had tickets to the 1:00 Yankee game. The weather was perfect. As usual I was running late and couldn’t find my Yankee’s cap. My wife said; “just buy another one at the stadium”. After seeing the prices at the stadium, paying for parking and the small mortgage needed to buy food, I decided that a cap was not at the top of my wish list.

 

The Yankee’s rallied back from 3 to zip, to win 4 to 3 against Baltimore. As we were walking out of the stadium I saw a few peddlers on the street selling Yankee caps for $10.00. I almost bought one, but I rarely buy from street peddlers and kept on walking. 30 feet from the first group of peddlers was another group selling the same hats for $5.00. I quickly reached for my wallet and bought a cap, along with a crowd of other people.

 

Now, think about it. These peddlers were selling the same caps and probably all worked together. But what they did was brilliant. They used a sales strategy known as, “frame of reference”. First, these guys knew what the hats cost at the stadium. Second, the first group offered the hats for $10.00. If they sold some at that point, great, but here’s how they maximize sales: By first positioning the price at $10.00 and then offering the caps at $5.00, they made the hats irresistible and a great value. It’s all a mind set. They actually sell more hats by using a frame of price reference, thereby creating a market.

 

The question now is: how can we use this strategy in our business?

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