{"id":1362,"date":"2026-08-01T15:30:53","date_gmt":"2026-08-01T15:30:53","guid":{"rendered":"https:\/\/calexis.com\/?p=1362"},"modified":"2026-07-03T14:56:24","modified_gmt":"2026-07-03T14:56:24","slug":"were-all-above-average-we-all-buy-below-retail","status":"publish","type":"post","link":"https:\/\/calexis.com\/index.php\/2026\/08\/01\/were-all-above-average-we-all-buy-below-retail\/","title":{"rendered":"We&#8217;re All Above Average; We All Buy Below Retail"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">If you ask anyone what their IQ is, they will give you a number higher than 100.&nbsp;Guaranteed.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"alignright size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"469\" height=\"305\" src=\"https:\/\/calexis.com\/wp-content\/uploads\/2026\/03\/image-16.png\" alt=\"\" class=\"wp-image-1363\" srcset=\"https:\/\/calexis.com\/wp-content\/uploads\/2026\/03\/image-16.png 469w, https:\/\/calexis.com\/wp-content\/uploads\/2026\/03\/image-16-300x195.png 300w\" sizes=\"auto, (max-width: 469px) 100vw, 469px\" \/><\/figure>\n<\/div>\n\n\n<p class=\"wp-block-paragraph\">How can that be?&nbsp;If the IQ is an index against the average with 100 being the average?&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That definition means that about half of the population has an IQ greater than 100 and half the population has one less than 100. Like in the graph. Not exactly half because some are right at the 100 mark. That&#8217;s just math.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It is impossible for much more than half the population to have scores much higher than 100.&nbsp;But, ask anyone. You will never meet someone who claims an IQ of 90. The standard deviation is \u00b115 which means, depending on the test, two thirds of the population have scores within 85 and 115.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The answer is also proof that people are incredibly poor at self assessment or understanding math. It is true that 80% of people are not good at math while the other half are. Or, there are three kinds of people, those good at math and those that are not.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This inability with math follows through to pricing. Kahneman and Tversky did many experiments on numerical choices. Humans consistently fail. I recently saw an ad for Winners (the Canadian TJ Maxs) where the selling idea was &#8220;does anyone pay full retail?&#8221; They don&#8217;t think they do.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The is a wide belief that buying at a &#8220;wholesale box store&#8221; creates savings. <a href=\"https:\/\/calexis.com\/index.php\/2025\/12\/07\/costco-pantry-loading-an-advertising-solution\/\" type=\"link\" id=\"https:\/\/calexis.com\/index.php\/2025\/12\/07\/costco-pantry-loading-an-advertising-solution\/\">It does, with a price<\/a> because of the quantity discount. After the $1.50 hot dog and drink, buyers are intoxicated with the &#8220;savings&#8221; on other purchases.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">What about the prices people and advertising claim for products?\u00a0Everyone thinks they pay less than retail.\u00a0Advertisers often feature \u201cless than retail\u201d for their retail prices. A price can&#8217;t be lower than itself. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">I think everyone is acquainted with the attractiveness of 99\u00a2 pricing. It is the dollar amount that is the reference price. Even if you know it, you are easily fooled.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">So how can everyone beat the average?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">We can\u2019t. But we can believe we do.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">We are all outstanding at self-deception.\u00a0We are really good at it.\u00a0So good, we don\u2019t even admit we are doing it. Self deception is our was of managing our cognitive dissonance.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">We can all rationalize that our perception is more authentic than reality.\u00a0And we are all smarter than the average bear. I have told a large group that everyone is above average in some way &#8211; for example, if they have two hands, or two legs. Even a small number of amputees means that the average number of hands, arms or legs will be less than two. It&#8217;s just math. It shows how deceptive averages can be. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As I have discussed in earlier <a href=\"http:\/\/calexis.com\/blog\/wp-admin\/post.php?action=edit&amp;post=344\">blogs<\/a> about comparative advertising, when a person\u2019s perception and reality collide, they consider perception to be more real than reality, perception is more factual than the actual.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That may not be logical, Mr. Spock, but that is reality. Ask any Trump voter to compare reality with what they thought would happen. They will bend reality.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">So for advertising purposes, the ways people perceive things is more important than reality.&nbsp;For customers contemplating purchase, the perception is the reality.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>That means understanding psychology is more important than understanding logic.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Advertisers are constrained by lawyers and the laws that try to limit our hyperbole.\u00a0But those lawyers and their laws are stuck in facts and logic. Advertisers can draw on beliefs or <a href=\"https:\/\/calexis.com\/index.php\/2026\/02\/28\/youve-got-a-lot-of-eggs-to-say-that\/\" type=\"link\" id=\"https:\/\/calexis.com\/index.php\/2026\/02\/28\/youve-got-a-lot-of-eggs-to-say-that\/\">perceptions, not facts,<\/a> to make their point.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Advertisers can make irrational claims that are perceived to be entirely logical to get above average results. It is a tribute to the human ability for self deception. There was an old bank claim when bank savings interest rates were regulated: &#8220;No one pays higher interest on your savings!&#8221; which is seen by consumers as a superiority claim, but in fact it is a parity claim especially when all banks pay the same rate. It is the two arms are above average argument.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Come to think of it, when is the last time you heard an advertiser claim to have gotten results that were below average? That&#8217;s outcome bias. We only want to talk about good results.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you liked this, read more at&nbsp;<a href=\"http:\/\/calexis.com\/\">Calexis.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you ask anyone what their IQ is, they will give you a number higher than 100.&nbsp;Guaranteed. How can that be?&nbsp;If the IQ is an index against the average with 100 being the average?&nbsp; That definition means that about half of the population has an IQ greater than 100 and half the population has one\u2026 <span class=\"read-more\"><a href=\"https:\/\/calexis.com\/index.php\/2026\/08\/01\/were-all-above-average-we-all-buy-below-retail\/\">Read More: We&#8217;re All Above Average; We All Buy Below Retail &raquo;<\/a><\/span><\/p>\n","protected":false},"author":2,"featured_media":1363,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,328,3,156,4,24],"tags":[357,416,424,425],"class_list":["post-1362","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-advertising","category-business","category-life","category-marketing","category-politics","category-retail","tag-above-average","tag-bad-at-math","tag-bargoon","tag-off-price"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>We&#039;re All Above Average; We All Buy Below Retail - Calexis<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/calexis.com\/index.php\/2026\/08\/01\/were-all-above-average-we-all-buy-below-retail\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"We&#039;re All Above Average; We All Buy Below Retail - Calexis\" \/>\n<meta property=\"og:description\" content=\"If you ask anyone what their IQ is, they will give you a number higher than 100.&nbsp;Guaranteed. 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