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The Rule of 100: How to Frame a Promotional Offer!

The Rule of 100

The Rule of 100: How to Frame a Promotional Offer!

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Ever wondered how do brands decide on discounts? It’s simple, they follow the Rule 100. Read more about the rule in this blog. This rule should be incorporated by the new brands as well.
So here we go!
The Rule of 100 Picture
If the product’s price is less than $100 or INR 7000, the Rule of 100 says that percentage discounts will seem larger. For  example, INR 2000 T-shirt or a INR 1000 entree, discounts in terms of  INR 200 or INR 100 looks smaller. But percentage wise (10 percent or 20 percent), that same discount looks much bigger. Quick take away here: If the price of your product is less than $100, always market your discounts in terms of percentages.
What if the price of the product is above $100?
If the product’s price is more than $100, the opposite is true. Numerical discounts will seem larger. Take a $750 vacation package or the $2,000 laptop. While a 10 percent discount may seem like a relatively small number, it immediately seems much bigger when translated into dollars ($75 or $200). Quick take away here: If the price of your product is above $100, always market your discounts in terms of numerical discounts.
So when deciding how good a promotional offer really is, or how to frame a promotional offer to make it better, use the Rule of 100. Think about where the price falls relative to $100 and how that shifts whether absolute or relative discounts seem more attractive. 
So, what would you choose? A T-shirt worth 5000/- marked with a INR 1250/- discount or flat 25% discount? Let us know in your comments.
Written with love,

20 thoughts on “The Rule of 100: How to Frame a Promotional Offer!

  1. Avatar
    January 7, 2019 at 9:52 am

    Sir both the offers for 5000/- are same. ie, 25% and 1250 are same for 5000/- haha!!

  2. Avatar
    Avii K
    January 7, 2019 at 10:19 am

    Great Blog☺👍 revealing d strategy behind promotional discounts.. Definitely consumer will eager to grab 25% if price is below 100$.

  3. Avatar
    April 10, 2019 at 1:18 pm

    Percentage discounts drive consumers' will more towards conversions. Great blog.

  4. Avatar
    Alena Rawat
    July 31, 2019 at 8:37 am

    T-shirt as Promotional Gifts, If you are looking for the best from your customize T-shirt with your company name, logo, and photos to make it more personalized as a promotional item then hire the best right printing company and

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    August 12, 2019 at 11:16 am

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    August 23, 2019 at 11:06 am

    Awesome post. Thank you so much.
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    FdF Marketing
    August 27, 2019 at 7:33 pm

    Very informative article, which you have shared here about business marketing. After reading your article I got very much information about creating a good promotional offer and it is very useful for us. Thanks for sharing this article here. Brand Development Agency Italy

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    September 7, 2019 at 7:53 am

    Very good article about online marketingt. Keep it on.

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    September 13, 2019 at 10:03 am

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    September 23, 2019 at 12:16 pm

    Nice post. Thanks for sharing! I want people to know just how good this information is in your article. It’s interesting content and great work.
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    I am thankful to this blog giving unique and helpful knowledge about this topic. Share Your Experience

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    October 9, 2019 at 8:17 am

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