
I’m a sucker for Girl Scout cookies. Just ask my neighbor. She knows she can count on me for a sale. She also knows that, no matter what new cookies debut each year, I’m going to buy my old standbys. (Samoas, if you’re wondering.)
This year, the Girl Scouts have finally gotten smart and narrowed their 25-item product line to six: Thin Mints, Do-Si-Dos, Tagalongs, Samoas, Trefoils and Lemon Chalet Creams.
Why? Because these cookies make up 77 percent of sales.
When you look at the production and marketing costs for the other 19 cookies, they add up to a lot of wasted money. Offering too many options can also stifle the urge to buy.
The Paradox of Choice
Author Barry Schwartz describes this problem in his book, “The Paradox of Choice: Why More is Less.” In one study, researchers set up a table of jam samples at a gourmet food store. Some people could choose from six jams; others 28.
“The larger display of samples attracted more shoppers, but these individuals did not sample more jams,” Schwartz writes. “Remarkably, shoppers who saw the larger display were less likely to buy jam than those who saw the smaller display. Much less likely.”
Instead of weighing 28 options to choose a free jam sample, many people decided to choose none. Imagine how that variety would impact costly purchases, where the stakes for consumers are higher.
Why Less is More (and More is Less)
That’s why too much variety can actually hurt your sales. Yet many small business owners assume that the more lines they cast, the more fish they’ll catch.
Take a look at your business and see if you can eliminate a few choices. Do you offer products or services that don’t generate sales, in hopes that the right person might come along? By cutting the clutter, you may improve your overall sales.
What do you think about variety — have you created the perfect mix of choices, or do you still have some paring down to do? Let me know in the comments section.
Photo montage from WSJ.com.
Great stuff as always, Kelly. Twenty five cookie types?? Who knew. And, that 77% number…spooky isn’t it how the 80/20 rule applies again and again to so many situations.
Kae Kohl recently posted…What defines successful online marketing
Kae — smart observation! I didn’t even think about that, but now that I do … eerie.
I have heard this before, but it wasn’t supported by any statistics. It is scary when you have a line of items to think about paring them down – but obviously, the “more is better” thinking can be helping us achieve the opposite result we are looking for. thanks for sharing this information.
There are a bunch of great studies in “The Paradox of Choice” — not all of them are from a marketing perspective but it definitely provides some great insights.
You’ve got a good, true point there Kelly. Honestly, I’m one of those buyers who is attracted on many choices but who do not decide when presented with too much of them. Maybe for some other people, they could still settle on what they really want but IT WOULD TAKE TIME for them to decide which is which. Time is essential in everything, and obviously in sales. More sales in less time reflect efficiency.
Justine @ how to astral travel recently posted…Astral Projection Classes- What to Expect and Do they Really Help
Great post! I’m like you — I always order the same cookies. For me it’s the holy trinity of Samoas, Tagalongs, and Thin Mints.
And yes, I totally agree — having too many options can make it difficult to make a decision. I’m thinking of buying a new MacBook Air but still have decision paralysis because there are so many configurations to choose from.
Now I just need to think about how I can apply this lesson to my own business.
Pingback: 5 Unconventional Freelancing Blogs You Should Be Reading | The Writing Base