"ON SALE!!!" The Perfect Persuader

One of the first assumptions you learn about in Economics is “People act in their own self interest.” This statement is important because it allows you to assume that people will make rational choices and therefore are predictable. You may hear this and think to yourself that all econ majors are selfish people but in reality we all make decisions that make ourselves better off and therefore more happy. Not selfishness but common sense.

The amazing thing is….. not only do Economists make this assumption but so does every business that tries to sell you something. As a result they use the power of persuasion to get you to buy their product. And guess what? We give in every time!

For example; A few days ago I received a gift card to my favorite climbing store for my birthday so that I could buy some much needed new equipment. When I walked into REI on Monday (Labor Day) there was a huge sign that said LABOR DAY SALE and the second I walked into the store one of the clerks was right on me, telling me about every deal that they had. He was quite persuasive but I held my ground! I was going to use the funds on that gift card and not a penny more! When I reached the aisle with the piece of gear I needed…. lo and behold it was on sale! Instantly ideas ran through my mind of what I could use the few extra dollars on my gift card for. And then I saw another piece of gear that I had been needing for quite some time and guess what? It too was ON SALE! Well of course I had to buy it! And so I did! Later realizing that I had walked into that store dead set on not spending a penny extra and walked out 30 dollars poorer.

What do I learn from this? First, courtesy clerks are horrible persuaders. Second, an “On Sale” sign is quite a much better persuading tool and a desperate 60 year old man acting as a “courtesy” clerk. It is interesting that persuasion does not necessarily need to be vocal or even come in the form of written arguments. An unbeatable price is persuasion enough!