The Rule of 100, popularized by author and marketing professor Jonah Berger, dictates whether to use a percentage or dollar-amount discount to maximize customer perception of value. For items under $ 100 $ 1 0 0 , use a percentage (e.g., 25% off a $ 20 $ 2 0 item); for items over $ 100 $ 1 0 0 , use a dollar amount (e.g., $ 20 $ 2 0 off a $ 200 $ 2 0 0 item).
The Rule of 100 says that under 100 percentage discounts seem larger than absolute ones. But over 100, things reverse. Over 100, absolute discounts seem larger than percentage ones.
A 100% reduction means it's free, so exceeding 100% implies you get paid, making claims of 500% or more price cuts unrealistic and usually marketing hyperbole or a misunderstanding of percentage calculations.
The rule says if the value is under a 100, a percentage discount seems more attractive than absolute discount. This behavior however flips when the value is over 100. For instance, let's say the $25 headphones that were always on your wishlist are on sale. The new price is $20.
All this is the reason why I decided to allow everyone who wants to access my course, “LIVING THE LEAD ROLE: Transforming Time Pressure into Joyful Living”, with a 100% discount. That means you can pay it as much as you want, including $0!
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What is the formula for discounting?
Discount Rate = Present Value / Future Value −1
The discount rate helps in evaluating the present value of future cash flows by factoring in both the cost of equity and the cost of debt, which reflects the overall risk and return expectations of the investment.
The 3-3-3 rule in sales offers several interpretations, most commonly a structured follow-up cadence (3 calls, 3 emails, 3 social touches over 3 weeks) or an engagement framework (grabbing attention in 3 seconds, building interest in 3 minutes, following up in 3 days). Other versions focus on content clarity (3 words in a headline, 3 sentences in body, 3 bullet points in CTA) or deepening account penetration (3 contacts at 3 levels). All versions aim for concise, impactful, and consistent engagement to cut through noise and build relationships.
Most brands test between 10-30%, but you can test any depth
There's no magic set of discount percentages. Most brands start by testing in 5% increments (10%, 15%, 20%, 25%, 30%) because they're easy to calculate and communicate. But it might be 17%.
Known as the 1% rule, this principle suggests that making minor, incremental improvements daily can result in exponential progress. It's the foundation of many high achievers' success and is backed by psychology, neuroscience and real-world studies.
If you give a customer a 100% discount code, then you're going to lose money. Nothing in life is actually free. The store owner would still be paying for the product, but the customer wouldn't be paying anything … not much of a business model there.
To politely ask for a lower price, be friendly and build rapport, then use phrases like "Is there any flexibility on the price?" or "What's your best price?" while showing genuine interest and explaining your budget constraints, and be prepared to make a reasonable counteroffer or ask for discounts on multiple items. Research market value first to make your request informed and realistic, and focus on finding a mutually beneficial compromise rather than demanding a reduction.
The 70/30 principle states that the salesperson should be talking for 30% of the conversation and listening for 70% of it. This 70/30 breakdown doesn't mean that you should spend 3 minutes of a 10-minute conversation giving your pitch and then listen to the prospect talk for 7 minutes.
There are 4 main types of pricing methods: cost-based pricing, demand-based pricing, competition-based pricing, and other methods. Cost-based pricing sets prices based on product costs plus a markup percentage. Demand-based pricing sets high prices for high demand products and low prices for low demand products.
The “40/40/20” rule is a way of looking at the three core elements of direct mail marketing. It says that 40% of direct marketing success is about finding the right audience, 40% relies on the offer itself, and 20% is driven by timing, format, and overall design elements.
It would be difficult to argue for a discount rate of any less than 5%, as very few marketing environments are that stable and predictable in today's world. A discount rate of 10% is commonly used, as it is generally around the return that firms make on their other investments.
At its core, the 60/40 rule says this: For maximum financial performance, companies should spend ~60% of their budget on brand building and ~40% on sales activation.
Allocate 70% of your budget here. Identify emerging opportunities: Look for channels or tactics showing early promise. Allocate 20% of your budget to test and scale these. Experiment with new ideas: Reserve 10% of your budget for completely new and untested marketing initiatives.
The golden ratio, also known as the golden number, golden proportion, or the divine proportion, is a ratio between two numbers that equals approximately 1.618. Usually written as the Greek letter phi, it is strongly associated with the Fibonacci sequence, a series of numbers wherein each number is added to the last.
