Tuesday, December 3, 2013

The Craigslist Trick You Fall For

The Craigslist Trick You Fall For

There's one born every minute: Shoppers fall for advertisements touting a high regular price alongside a lower asking price, finds a new study from the University of Colorado, Boulder.

For example, items that were advertised as "Regularly $119.99, Sale Price $39.99" attracted more buyers than ads reading simply, "Sale Price $39.99". People also estimated an item to be worth up to 84 percent more if its ad mentioned a higher regular price.

Even if buyers recognize the higher price is BS, studies show they're still a lot more likely to fork over cash, says study coauthor Christina Kan. The way it works is pretty simple: The larger regular price inflates the buyer's perception of an item's value, and so makes the figure you're offering seem more attractive, Kan explains. (Look at any Groupon email, and you'll see crossed-out prices that are based off this sales trick.) 

So whether you're selling an old television or a used car, you'll up your odds of a deal if your item description emphasizes a higher original price, the research says. High-quality photos, a detailed product description, and language suggesting the item is in limited supply--"Only one available!"--are also great ways to improve your chances of a sale, Kan says.  

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