July 17, 2024

Bucks Vs. Dollars

Good Morning

When I get home from the office I turn on the television to help me relax. What I’m seeing is a lot of ads for organizations asking people for donations or memberships. (It’s that time of year.) I also see it in the mail I get. It seems that a lot of them are asking for just $19 a month.

Years ago I was told about a study that found that people think of anything that costs less than $20 as bucks and anything over as dollars! People tend to think of bucks as either pocket change (when people carried cash) or spending money. Whereas when over $20, people tend to think of that amount as dollars, or real money. Dollars/real money is what people think twice about spending.

Have you ever noticed how companies break down amounts to X cents per day or “less than a dollar per day”? That’s to get past your resistance and thinking about how much you are really spending.

In this day with more and more people using cashless pay options people tend to overlook small amounts on their monthly statements. What’s 5, 10, 15 or even 19 dollars per month? It’s not a lot of money; it’s just bucks! It’s one or two drinks at Starbucks!

If you offer a product or service that produces recurring income for you (we should all have one), you might want to think about what you charge for it. And how you explain it – bucks vs. dollars.

The bucks vs. dollars debate does move up the money scale based on the value of the product/service and amount spent. I have heard people spending 25, 50, 75 even 100 bucks without thinking about it because they believe that the value outweighs the money spent and their belief system of what constitutes “real money.”

Don’t have a product or service that is generating recurring income for you and would like one? I can help you find or develop one that fits in with your business. Just contact me!

Till next time.