Tag Archives: law of contrast

Episode 175 – The Energy of Influence

Energy of Influence

      Another way to enhance your ability to motivate yourself and others is to make sure all things are balanced in your life. Great persuaders lead a balanced life and keep everything in perspective. I call this delicate balance “life alignment.” Make sure there is balance in every aspect of your life. Imbalance can undermine motivation and cause inaction and unhappiness. Many times, we quit early because of imbalance, even when we don’t realize an imbalance exists. It may be only one area of our life that is out of whack, but it can still have a direct effect on other areas of our life. Just as in a mutual fund, where one bad stock can pull down the fund’s overall value, one bad area in your life can also have a disproportionate negative effect. 

            Ask yourself these questions: Would I invest in my own mutual fund of myself? Would I suggest that my family or friends invest in me? These are hard questions to ask, but the answers to them are necessary as you get your life on track. Take a look at the stocks in which you have invested in your own life. What stock is pulling the rest of your portfolio down? Are you a growing mutual fund or is your mutual fund losing money? Is your fund stagnant? If you won’t invest in your personal mutual fund (yourself), who will? 

            When we look at life, we have to realize that it is not lived in segments, but rather, it is part of a greater whole. Every aspect of your life will either help or hurt the rest of your life. Our aim is to get all aspects working together to create a high-performing fund. Realize, however, that you can invest too much in one aspect of your life. When you do, you can get unbalanced just like a tire on a car. Even too much of a good thing can lead to disaster. 

            As you invest in yourself, you must make sure you are diversifying in the following six areas: We often spend too much of our time spinning our wheels and investing in stock that has no value or that is diminishing the value of our mutual fund. We get so busy buying the stock society recommends that we forget to examine whether this stock is helping or hurting us. There may also be times when you need to sell a stock (change a habit or belief) because it is not performing. We always need to make sure that we are a growth fund and that we are continually investing the right things in ourselves. If we neglect any one of the life-alignment areas, our overall happiness and success will diminish.

link to article: 

http://psychcentral.com/news/2016/05/02/evidence-found-for-visual-stereotyping/102596.html

Check out this episode!

Episode 130 – Price…a non-issue?

This week’s article is sure to offend some listeners.  If you’re a short man or an overweight woman, the British Medical Journal has bad news for you.  Hey were just the messenger!  Check out their recent study linking hight, body mass, and socio-economic status.

“Price is what you pay.  Value is what you get.”  -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.  Contrast is used for negotiations.  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.  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.

Adjusting Value Examples 

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

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

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

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

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

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

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

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

Episode 102 – The Biggest Persuasion Blunder Of The Year!

You can’t visit a business web page without hearing “follow us on Twitter!”  We’re certainly guilty of this too.  Follow us on Twitter @influencemax!

A recent article from Psych Central shows that when customers complain about a business on Twitter, businesses can actually shoot themselves in the foot by responding too much!  Check out the article here.

If you’ve ever been told your product is too expensive, you need the Law of Contrast.  This is the most effective way to set the terms of value.  Many times prospects come to the table with a preconceived value of your product (justified or not).  You can turn the tables with the Law of Contrast!

Speaking of the Law of Contrast, this episode features a horrible use of it which HAS to be the persuasion blunder of the year!