Peanuts Effect In Pricing

Hey there 🧠

Ready for another day of staying ahead of the competition in the Growth race?

Oh and before we go ahead! If your friend sent this to you, be sure to subscribe here! So you don’t miss out on any editions.

Partnership with Lindy

Give Your Marketing Team Superpowers with AI Agents

Lindy AI CMO is a suite of powerful agents that ship beautiful marketing campaigns quickly. 

Simply enter your business's website, and watch AI agents study competitors, create messaging docs and campaign briefs, and generate creative assets. Everything is automatically organized in Airtable, ready to deploy. 

With Lindy, marketing isn't a grind; it's a system that runs 24/7, handling strategy, analysis, and creative work while you focus on growth.

See AI Agents in Action today!

💡 When a Small Discount Performs Better as a Mystery Offer

If your discount is tiny, it may not feel worth acting on. Research suggests a smarter play: replace small guaranteed discounts with a chance-based discount that looks much larger. For bigger discounts, certainty still wins.

1️⃣ The Core Recommendation: If your discount is under 10 per cent, test an uncertain offer with a bigger headline value, such as a 1 in 10 chance to get 50 per cent off. This can increase purchase intent while lowering your average discount cost. If your discount is over 10 per cent, stick with a guaranteed discount because the value is already meaningful, and certainty becomes more attractive.

2️⃣ What the Research Found: Across five experiments, people consistently preferred larger uncertain discounts over small guaranteed ones. For example: • Hotel buyers were 92.6 per cent more likely to choose a 10 per cent chance of a free night compared to a guaranteed 1 per cent discount per night • Gym buyers were 12.3 per cent more likely to choose a 10 per cent chance of free training over a guaranteed 10 per cent discount

3️⃣ When the Effect Gets Stronger: The preference for mystery discounts increases when:
• The guaranteed discount feels trivial
• The product is cheaper, and the stakes feel smaller
• The guaranteed discount is shown as a percentage rather than a fixed amount in certain contexts. In short, when the sure thing looks small, people chase the bigger possible win.

4️⃣ Why It Works Psychologically: People judge discounts by perceived size, not just objective value. When a sure discount feels like peanuts, risk feels acceptable. This is tied to the Peanuts Effect, where people take more chances when the downside feels insignificant.

5️⃣ A Real Life Example to Apply: Instead of offering a guaranteed $1 off candy, Target could try a chance-based mechanic like “Spin to win up to 50 percent off.” They could also reframe the discount to sound larger and adjust price presentation to make the deal feel more compelling.

The Takeaway

Small discounts often fail because they do not feel exciting. If you are under 10 percent, a mystery discount can outperform by making the reward feel bigger while keeping costs controlled. If you are above 10 percent, guaranteed savings usually convert better because certainty becomes valuable.

💡 Turn Your Data Into a Detailed Slide Deck Using NotebookLM

NotebookLM can turn scattered sources into a clean, presentation-ready deck in minutes. Instead of copying bullets into slides manually, you feed it your sources and let it generate a structured slide deck you can quickly refine.

1️⃣ Create a New Notebook: Open NotebookLM and start a new notebook for the topic you want to present. This keeps all your material, notes, and generated outputs organised in one place.

2️⃣ Add Your Sources: Gather the URLs of the articles or web pages you want to use. Then select Add sources → Website and paste the links. NotebookLM will pull in the information so it can generate slides grounded in your inputs.

3️⃣ Generate a Slide Deck With a Prompt: Go to the Slide Deck, describe what you want, then hit Generate. Sample Prompt: “Explain Newton’s law of motion to a 10-year-old who loves soccer.”

4️⃣ Customise and Refine Instantly: NotebookLM produces presentation-ready slides within seconds. You can edit titles, reorganise sections, adjust tone, or expand details using simple follow-up prompts. If the first version is strong, you can present it as is.

The Takeaway

NotebookLM makes slide creation fast and source-driven. Add your URLs, give one clear prompt, and you get a deck you can tailor in minutes, without starting from a blank slide.

As we prepare more "Growthful" content, we'd love to hear your thoughts on today's edition! Feel free to share this with someone who would appreciate it. 🥰