Create A Cash Flow Show

Party Plan Show Average Goes UP!

I always thought that people spent more money at my shows when they used credit cards. I never really did any research on that belief, though. Recently I read an article on a British study that examines the psychological reasons why a person might spend more using a credit card.

The report called the “The Realities of Spending” said among other things:

Adding a small amount to an already large credit card bill makes it feel like you did not spend as much.

Thinking about the cost of a purchase while consuming or using it can lower the pleasure gained from the purchase. Credit cards block this by disassociating the payment from the consumption - in other words, you don’t feel the pain of paying for something while using it if you use your credit card.

It is easier to put “things” on our credit cards than experiences because while you are paying off your credit card, you can think of all the enjoyment you are getting from the physical thing you still have, i.e. home decor, kitchen tools, makeup, jewelry.

So the report is extensive but not really definitive.  I think in direct sales the message is that it is important, during your product wrap-up or show closing, to tell your guests that ‘we love credit cards’.  There are two reasons:

1. It is good customer service.
2. It may increase sales.