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Back to Mental Models

Value Addition vs Price Reduction

Adding valuable bonuses to create urgency is more effective than discounting price because it increases perceived value while maintaining price integrity.

Decision Rule

When creating urgency, ask 'What can I add?' rather than 'How much can I take off?'

How It Works

Discounts signal lower quality and train customers to wait for sales, while bonuses increase perceived value and make the core product seem more valuable by association.

Failure Modes

Bonuses that don't align with core product benefits

Overcomplicating the offer with too many bonuses

Making bonuses seem less valuable than they are

Example Decision

Instead of offering 20% off a $1000 course, offer the course plus $500 worth of templates, worksheets, and group coaching sessions for full price but only for early buyers.