Practical Sales Training™ > How To Convert > The Trade In Effect
What is it?
The Trade In Effect is when you offer a discount to a client when they bring their old product to you when they purchase.
Why does it work?
It works because we naturally want to have the latest, bestest, most shiniest things possible and by offering a trade in this is not only made possible, but made cheaper.
How can you use it?
This is best suited to a physical product offering, so what discount could you offer clients in return for them bringing their old/used/faulty items to you when they purchase.
Example Scenario: Apple iPhone Trade-In Program
Apple offers a trade-in scheme where you can bring in your old iPhone (or even an Android device) and receive a discount on a new iPhone.
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If your current phone is in good condition, you might get up to £300 off a new one.
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If it’s not eligible for credit, Apple will recycle it for free, still making you feel like you’re doing something good.
Why it works:
You feel like you’re getting value from an old device you no longer want, and it reduces the psychological pain of spending on a new one. It also helps you justify the upgrade and smooths the decision to buy.
How you can apply it:
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A gym could offer discounted memberships if you “trade in” old home gym equipment
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A clothing retailer could offer vouchers when customers bring in old clothes
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A software company could offer a discount to users switching from a competitor’s platform
It’s about making the upgrade easier and reducing friction in the buying decision.
See also
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