When I got started with my brand in 2013, I didn’t know much about the business at all. I was kind of like a parrot mimicking everything that I saw other big brands do. I failed to realize the psychology behind it all and didn’t realize the same psychology was affecting me every single day and how I purchased items. As I’m penning this blog, I was looking at a 75-inch Samsung TV on Costco, and the Rule of 100 showed its face. I was already looking for it, but it drew me in—it got me. I wasn’t ready to pull the trigger yet, but the way that they framed it already sold me.

Now, as a brand owner, I know the importance of clearing out merchandise after a big launch. When you drop multiple items at once, you will always have leftover stock. That’s the reason brands run sales: to move that inventory. Since this is bound to happen in your business too, understanding how to frame those discounts is essential.

Here’s where The Power of 100 comes in. Let’s say you’re selling two hoodies—one priced at $75 and the other at $125. For the $75 hoodie, offering a 20% discount sounds a lot more compelling than saying “$15 off.” That percentage feels bigger, even though the amount is the same. On the flip side, for the $125 hoodie, framing the discount as “$25 off” feels more powerful than “20% off,” even though both discounts are identical. This is the psychology behind the Rule of 100—it’s all about how the value is perceived by your customer.

The Rule of 100 teaches us that for products under $100, a percentage discount feels bigger, while for products over $100, showing the dollar amount packs more punch. This subtle difference in how you present discounts can make all the difference in how your customers perceive value.

In business, how you frame things matters. Use the Rule of 100 to sell smarter, move your inventory, and boost your revenue.

God Bless The Entrepreneur.