𝐓𝐡𝐢𝐬 𝐢𝐬 𝐧𝐮𝐭𝐬!! 🤪 How Costco Wholesale got me to spend $850 using a $33 carrot

Back in May, I decided not to renew my Costco membership.

It seemed logical, why spend $130 when I wasn’t shopping there often?

Then, in September, I got a surprise in the mail.....A cheque for $32.92 💸 from my Executive Membership cashback

I saw that cheque as MY money.

If I didn’t use it, I felt like I was throwing away money I had already earned.

That tiny check triggered a whirlwind of mental gymnastics to justify why I needed to renew my membership.

Fast forward to yesterday: Not only did I renew my membership for $130..... I spent another $750

With the membership fee added, that $33 cheque cost me $850.

Now, here’s the brilliance of loss aversion:

We fear losing something we perceive as ours, like the cashback I earned.

If Costco had sent me a $65 coupon or even 50% off my membership, it wouldn’t have worked even though it's MORE than the check.

Discounts don’t feel like losses avoided, they feel like optional bonuses.

Costco didn’t trick me, they simply leaned on a fundamental principle of human psychology.

And it worked like a charm.

Do you use loss aversion in your discussions with clients? Share your story! 👇

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