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    Price Psychology Entry #0354

    The reason free shipping outperforms an equal discount

    Removing a five-pound delivery fee converts better than taking five pounds off the item. The two are arithmetically identical and psychologically separate.

    Adept
    The hidden part #0354

    A fee is a loss with no matching gain. Folding it into the price removes the loss without changing the total.

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    Price Psychology Entry #0363

    Why a discount you did not ask for lowers value

    An unrequested reduction answers a question the buyer had not asked: what the seller can still accept. The old price stops being a fact about the product.

    Novice
    The hidden part #0363

    A volunteered discount does not describe a better deal. It describes how much room the first price contained.

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