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"Price is what you pay.\xa0 Value is what you get." \xa0-Warren Buffett

The Law of Contrast explains how we are affected when we are introduced to two different alternatives or options in succession. We know that contrasting two alternatives can distort or amplify our perceptions of price, time or effort. Generally, if the second item is quite different from the first, we will tend to see them even more differently than they actually are. As a Power Persuader, you can use this contrast to navigate your audience toward the object of your persuasion.

The use of contrast is based on our perception of items or events that happen one right after the other. If you've had a rotten day because you found out you're losing your job and you come home to a new scratch on your car, you will have a different reaction than if you were having a great day because you're getting a promotion and then came home to the scratch on your car. It's the same scratch, but there are very different perceptions and reactions to it.\xa0 Contrast is used for negotiations.\xa0 When we offer a really low or high bid or when we ask for $200 and only expect $50. This is contrast. What if you thought it was a 60 minute meeting and then it only took 30 minutes.\xa0 What if that 15 minute meeting lasted 30 minutes?

This is all about human perception. The human mind has to find a benchmark or comparison to make judgments, especially when we are talking about unfamiliar situations or new products. People need to make comparisons with their past experience and knowledge. The brain will always attempt to contrast your product or service. Is it the best or worst, cheapest or most expensive? Is your product the safe or risky choice or is it familiar or strange? By presenting your prospects with contrast, you are creating those comparisons for them. The mind can't process everything at once and so it develops shortcuts to help make decisions. Instead of making a completely internal judgment, we look for boundaries, patterns, and polar opposites. We want to know the difference between our options, so we naturally contrast the two items. We mentally create a value or price in our mind from highest to lowest. Do you want your prospects to compare your product or service to a second-hand used car or to a Rolls Royce? You get to decide where you want them to start their benchmark.\xa0\xa0

Adjusting Value Examples \xa0

Bonuses - 3 bonuses worth $25 each have more value than to get one bonus worth $75

Product \u2013 Having all your product arrive in one box has less value than receiving 3 separate shipments.

Retail \u2013 Keeping the high prices at a grocery store increases the perception of value and savings when the savings is shown on the receipt

Cars \u2013 We feel like we get a better deal on a car when we see the large retail price, and we get a rebate.\xa0

Payments - It is easier to swallow the monthly payments on a large purchase rather than seeing the whole price tag upfront.

Gas \u2013 Getting a 10 cent discount when you pay cash is easier to swallow than a 10 cent surcharge for using your credit card.

Payroll \u2013 There is higher perceived income when you separate all their benefits on their check versus putting it all in one large sum.

Negotiation \u2013 Starting as high or low as possible will get you better terms.