Importance of Practicality in Business
A poor boy was the center of ridicule in his village. Every day, he is asked to choose between a large silver coin and a gold coin. The gold coin is worth twice as much as the silver coin but the boy always would choose the silver coin and run away, leaving the crowd laughing uncontrollably.
One day, a visitor asked the boy, “Don’t you know that the gold coin is twice as valuable as the silver coin?” The boy smiled and replied, “Yes, I know.” The visitor was confused by this, so he followed up with another question “Then why didn’t you choose the gold coin? You’ll have more money if you did!” The boy then intruded “But, if I take the gold coin, the people won’t play games with me anymore. Do you have any idea how many silver coins I have collected already?”
This boy who was made fun of and was accused of being slow-minded has displayed a remarkable quality of being practical.
In the business world, this quality is proven to be very effective. Customers need to feel that what they buy is worth the money and effort. Just like how the boy satisfied the villagers with laughter, and also made them think that they paid so little amount as if they didn’t even lose anything at all. He sold entertainment at a cheap price.
For new entrepreneurs, it’s important to know that earning less is earning more. How? One way is to make the consumers feel that what you offer is a bargain for them. Make them feel that in whatever aspect, they have nothing to lose without reaching the point where it seems too good to be true. It’s important to show them that you value the quality of your product. For the boy, one silver coin is enough for what he offers. Is it enough? Well, the boy didn’t invest any money, yet he was able to earn something. Even if the silver coin is of smaller value compared to his other option, he’s able to get more money, little by little. So, statistically speaking, the boy earns more than enough, judging from the relationship between his investments and the profit that he’s making.
Combo meals, multiple access, and products with a 10 and above percentage off are just some of the examples of what most consumers would consider a bargain. Just remember to prioritize your investments on the deal that you are trying to offer. That way, you could still earn what you and your product deserve while also having a lot of satisfied customers.