There are two situations for any club, event, outing, etc,.
1) You pay to get in and then you pay for things inside.
2) You don’t pay to get in and then you pay for things inside.
In both circumstances, you pay for things inside, but there is a large mental processing gap when it comes to how much you’re willing to spend inside.
See, the situations you pay to get in, you’re lead to believe everything inside will be cheaper. It’s not. Then you begin to rationalize your purchases, typically beginning with, “Well, it was already $15 to get in…”
On top of that, you may rebut with an example of an all-inclusive package. Supposedly, you pay for the all-inclusive package and everything “inside” is free. Thing is, it’s never free. When you’re inside, you then have to pay for an upgrade or to get the special drink that’s not included in the package or to get into VIP.
Taking a look at the other side
Everyone loves free. In fact, I’d argue they love getting into something free more than having everything inside be free. When you make an exchange with money, the value of the item (perceptional value) increases. That is, people who, say, buy a brat at a brat fest think the brat tastes better than someone who pays to get into the event and then gets the brat for free.
What does this mean for you and me?
It means to let your customers, clients, friends, strangers into your business for free and then charge them for what’s valuable inside. Consider all the business models that incorporate the situation where customers must pay to get in, then everything inside is free. Newspaper subscriptions. Water parks. Strip clubs. Movies.
Having clientele pay for what’s inside and not pay to get inside is not a flawless model (think Netflix), but it’s one worth considering when developing your business plan. One worth arguing about. Perhaps, one worth rebutting (or supporting) in the comments section below.
Stay Positive & Never Underestimate The Power Of In For Free
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