Ever wonder why many majors hit you first with the dearer item when you come into the shop?
Why in a car yard are the dearest cars in front not the best selling cars?
This is the "anchoring effect." You should consider this for your shop. When hit with a lot of new stuff, it works as people tend to grab the information they get first as the basis for making decisions.
Here is an example of how it works.
Imagine you have three items on sale.
1) $30 item
2) $40 item
3) $50 item
If you see the $30 item first, your immediate thought is that the $40 and $50 things are dearer.
But, if you see the $50 item first, your immediate thought is that the other items are cheaper.
Studies have shown that having the $50 item on display first makes people more likely to buy it, as the $30 and $40 items seem reasonable. Interestingly, sales of $40 increased dramatically. It is claimed that it is worth having the $50 just because of this, even if it does not sell.
It is something worth thinking about.
Here is a video of how it works in practice and what you should do about it.
This is where you have to be very careful looking at your sales reports.
