A Quick Tip to Optimize Discounts for Handmade Sellers
Black Friday is just around the corner! With only four weeks to go, now’s the perfect time to fine-tune your discount strategy. And here’s a simple trick to help you create offers that feel more impactful to your customers: the Rule of 100.
Whether you’re considering percentage discounts or flat-rate offers, the Rule of 100 can guide you to pick the one that makes the biggest impression on your audience. Let’s break down how it works and how you can apply it to your handmade business for a Black Friday that customers won’t forget.
The Rule of 100: Making Discounts Look More Enticing
The Rule of 100 is a straightforward way to decide between using a percentage-based or flat-rate discount based on your average order value. Here’s the essence of the rule:
If your average order value is below $100 (or equivalent in your currency), a percentage discount will look more appealing to customers.
If your average order value is above $100, a flat dollar or euro amount creates a greater impact.
This rule works because our brains interpret discounts differently based on the type and size of the purchase. Let’s look at an example:
Below $100 Example: Say you sell handmade candles with an average order value of $50. A 10% discount translates to a $5 savings, which sounds pretty good to customers. However, a $5 flat discount doesn’t carry as much visual punch as “10% off.”
Above $100 Example: If you sell custom-made furniture averaging $500, a $50 discount feels significant compared to a 10% off deal, which might seem smaller and less impressive.
How to Apply the Rule of 100 for Black Friday Offers
Here’s how to put the Rule of 100 to work for your holiday discount strategy.
Identify Your Average Order Value (AOV)Look at your recent sales or use analytics tools in your e-commerce platform to find the average amount customers spend per order.
Decide on a Discount Style
Under $100 AOV: Opt for a percentage discount to make it look bigger (e.g., 15% off instead of a small dollar amount).
Over $100 AOV: Use a flat-rate discount to create a strong impression (e.g., $50 off rather than a smaller percentage).
Craft Your Offer with ClarityBe clear about your offer in your Black Friday promotions. Emphasize the total savings, and consider adding context to make it more compelling (e.g., “Save $100 when you spend $500 or more on custom furniture!”).
Test for EngagementIf possible, try out both percentage and flat-rate options in the lead-up to Black Friday to see what resonates more with your customers. You might be surprised at how this simple adjustment can impact engagement and conversions.
Quick Tips for a Strong Black Friday Campaign
Highlight Limited-Time Savings: Make sure customers know this discount won’t last forever—countdowns or “while supplies last” messaging can boost urgency.
Feature Your Best-Selling Products: Use the discount to highlight popular items that might bring in new customers or encourage multiple purchases.
Bundle Offers for Extra Value: Pair products together with a flat-rate discount to increase order value while making customers feel they’re getting more for less.
Black Friday is a huge opportunity for handmade sellers to attract new customers and boost sales. By using the Rule of 100, you can ensure your discounts look as enticing as possible, helping you stand out in the busy holiday market. Now’s the time to start planning your offers—so you’re ready to wow your customers when the big day arrives!
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