Time vs. Money Pt 2

When we left off two post ago we were going to tell you how a children’s lemonade stand can help you be a more successful salesperson and help you sell more.  The researchers wanted to see if references to time or money affected purchasing decisions. 391 people walked by, from all ages and walks of life to buy lemonade. The researchers used three different sign at a lemonade stand.

 “Spend a little time, and enjoy C & D’s lemonade.”   (time)                          

 “Spend a little money, and enjoy C & D’s lemonade.”  (money)

 “Enjoy C & D’s lemonade”.      (control)

I asked witch sign you thought would be best, and the winner with the best reason why……….Rob! Here are the results and what it means for you business.

The Results

Of the people that stopped to buy lemonade 

The sign that mentioned time had a 14% response, that was in fact twice as many people then when the money sign was shown .(7%).

If that was not enough for you to not mention money in your meeting or advertising how about this. Customers in the time condition paid more money for the lemonade (on average $2.50) compared to the money condition (on average $1.38). 

As for the control condition sign, (number 3) The control condition was in between on both # of people stopping to purchase and the average price, what that means is that mentioning time brought the most customers and the most money, mentioning money brought the least customers and the least money, and mentioning neither was in between.

This is pretty powerful stuff. Now, this does not mean this is ALWAYS the case. It never is. But, there are a few things to consider. 

Take Aways

Most of the time your customers will purchase things based on time and the experience. The authors state it best .

“Because time increases focus on product experience, activating time (vs. money) augments

one’s personal connection with the product, thereby boosting attitudes and decisions.

However,“time vs. money effect”proves robust across implicit and explicit methods of because money increases focus on product possession, the reverse effect can occur in cases where merely owning the product reflects the self (i.e., for prestige possessions and among high materialists). The construct activation. Implications for research on the psychology of time and money are discussed.”

The last point is an important one if you are selling high end products. This means time may not be the most important factor. So, as I always say know your audience. How will you use this information to help your sales or the team you manage??????

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