Almost invariably, my clients ask me how they can boost sales, especially while they are suffering a squeeze on their cash flow.

There are many techniques and tactics. For example, I have noticed that too many people are prepared to forgo an advertising campaign, even when ( or just because?) they are strapped for cash. Equally, I urge shop owners and manufacturers not to hold on to dead stock, just in case………….well,just in case that a whole load of people want to buy the lot at the original high price. Yes, seriously, that is what they seem to hold out for.

Daniel Kaheneman, Nobel Prize Laureate and author of the best seller “Thinking, Fast and Slow“, offers a fascinating alternative insight. On page 126, he describes how all of us – suppliers, sellers, consumers – become ‘anchored” by an initial suggested price offering.

He recalls a special offer for canned soups, selling at a 10% discount. In parallel, an additional sign was placed near the goods. On some days, the customer was told that they could buy as much as they liked. On others, sales were limited to 12 cans per person.

The result? When the second sign was operative (which ‘restricted’ customers), sales reached an average of 7 per purchaser.  That was double the average for the other days!

I have a plan to take this concept one step further with one of my clients in Jerusalem. I will suggest that they will display prominently a leading product, reducing it by 10% to say 100 shekels. Next to it, they should place some old stock, heavily discounted at 33 shekels per unit, limited to 3 items per customer. It will be interesting to see the reaction.

Nothing to lose. Everything to gain in higher potential turnover, without increasing inventory.