The books / Selling from the Farm / chapter 6 of 14

Why a bargain spreads faster

All chapters
  1. The going rate
  2. A price has a shoulder
  3. What the road brings
  4. Regulars
  5. A new thing on the shelf
  6. Why a bargain spreads faster
  7. Pricing a jar so it sells out before the next crop
  8. The co-op is a valve
  9. Market day
  10. A shop of your own
  11. Signs, leaflets and adverts
  12. Selling by post
  13. Selling drink
  14. What a keeper is really choosing

A price a little under what people expect does not just sell a bit more of itself; it gets talked about. Someone who paid less than expected for something good tells a neighbour, in a way someone who paid exactly what they expected rarely bothers to. An introductory price is not only a discount; it is advertising that costs nothing beyond the discount itself.

The effect is not free money though. Every jar sold under the going rate still earns less than the same jar would have. What it buys back is speed: a product nobody has heard of becomes known faster, and once known it can be priced properly.

In this game a jar priced three tenths under the going rate spreads a class's name 1.3 times as fast as the same jar sold at the going rate.