The Hidden Cost of Too Many Choices

_{[Read time: 2.5 minutes]}

Have you heard of this now-famous grocery store experiment about selling jams?

It’s fascinating.

Researchers set up two tasting tables to see how the number of buying options influenced buying outcomes.

One table had 24 jams (to sample and buy).

The other had just 6.

The bigger table drew more attention.

(who doesn’t love a good free sample and a huge variety?)

But when it came to buying the smaller table captured more sales (per).

A person was 6x times more likely to buy jam when presented with 6 (than with 24).

That difference has stuck with me.

Not just as a business insight, but as a personal one.

Because it’s not just customers who freeze when faced with too many choices.

I do it too.

(even knowing this study exists)

For example, when I start to write these posts and all there is is a blinking cursor and blank screen, I catch myself reaching for my phone instead. Not because I don’t know what matters, but because too many options blur what’s obvious.

It feels overwhelming.

Not knowing where or how to start.

So my brain becomes paralyzed by choice.

Defaulting to doing nothing.

We tell ourselves more choice means more freedom.

But it often means more second-guessing, less satisfaction, and no progress.

It can even cost us money.

Another study (on a the same topic) found employees who were offered more retirement fund options actually participated (invested) less.

They were so overwhelmed with what to choose, that the chose to do nothing, even when the company was handing out free matching contributions.

That’s literally leaving free money on the table.

So here’s what I’ve learned: You don’t need more options. You need clearer ones.

Enough to compare, but few enough to actually move.

If you’re stuck right now, it’s probably not because you lack choices. It’s because you have too many.

I can’t unsee this paradox of choice.

It’s everywhere.

Pricing.

Offers.

Paint colors.

The real issue is I see owners think they are offering just 3 clear options. But to the buyer, it feels like dozens of confusing combinations of speed, scope, support, and outcomes.

What feels simple to you can feel like a maze to them.

That clutter keeps people from buying, and it keeps you from moving forward.

The smartest move usually isn’t adding something.

It’s letting something go.

See you next week.

— Peter

P.S. This is the other side of the argument for offering 3 options. Just 1 doesn’t put psychology on your side, and too many causes mental overwhelm.

P.P.S. When you’re ready to uncover and define the right number of pricing options, so your customers aren’t overwhelmed by choices. Just start here.