John WetmoreSales and Scaling Coach for Small Business and Corporations. Keynote Speaker. Podcast Host. Life Insurance Leader.

How Movie Theaters PRINT Money

Name: How Movie Theaters PRINT Money
Uploaded: 2024-05-25T14:20:00+00:00
Duration: 33 s
Channel: John Wetmore
Description: In this monologue, the speaker explains a common upselling and anchoring technique used by businesses such as fast‑food chains, movie theaters, and…

25 May 2024 · 1 min

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In this monologue, the speaker explains a common upselling and anchoring technique used by businesses such as fast‑food chains, movie theaters, and restaurants. The strategy involves presenting a high‑priced “anchor” (e.g., a luxury watch or a Ferrari) to shock the customer, then offering a more moderately priced alternative (the “option B”) that typically represents 70‑80% of the business’s revenue. By frightening the customer with the extreme price, the mid‑range option feels reasonable, leading to a conversion rate of roughly 10% for the higher‑priced upsell. The speaker highlights that this pattern is deliberately replicated across industries to maximize revenue.

Chapters

Your whole goal is to lead them to option B because fast food chains, movie theaters, right? All these restaurants, etc. The medium size is usually like 70 or 80% of their revenue. So just duplicate that, whether it's like an expensive watch like we like or a car or whatever. And they'll show you like the holy cow Ferrari, whatever. And you're like, oh yeah, that looks awesome. And they're like, that's $500,000, but you could get this one for $320,000. And you're like, wow, that's not so bad. So if you scare the shit out of them with the max out, now granted, some clients will take it 10% of the time. Yeah.