Have you ever wondered why you’re happy to spend $17 on a bucket of popcorn that probably costs 50 cents to make? Or why do you feel a strange sense of loyalty to a brand like Apple, even when their competitors offer more features for a lower price?

In this episode of The Lat Chat, we sat down with Nathan Yung, the visionary creator behind The Business Bubble. Nathan is an expert at dissecting the “why” and “how” of consumer behaviour. Whether you’re running a local cafe or a growing accounting firm, understanding the psychology of your customers is the difference between a business that survives and one that thrives.

The “Why Machine”: Moving from Transactional to Relational

Many business owners treat marketing like a megaphone—they just want to shout their prices at as many people as possible. Nathan’s approach is different. He started what he calls a “Why Machine” in his head at just 13 years old while working in his father’s restaurant in Beverly Hills, Sydney.

He realised early on that if the restaurant was empty, his family didn’t eat. This sparked a lifelong obsession: How do we bring customers back?

At Latitude Accountants, we’ve adopted a similar philosophy. The traditional image of an accountant is often a bit scary—someone in a suit speaking over you in jargon. We wanted to break that mould by being relatable. As our co-founder John Sard explains, we want our clients to feel like they are talking to a friend. When your marketing is genuine and reflects your true self, it resonates more deeply with your audience.

Content is the New Shopfront

A common question small business owners ask is: Does every business need to be a content brand?

Nathan’s answer is nuanced. While you don’t necessarily need to be an “influencer,” you do need to understand that social media is the modern-day business card. People jump onto social media for two main reasons: to be entertained or to be educated. If your content doesn’t help them “laugh or learn,” they will simply swipe away.

TikTok vs Instagram: Which is Right for You?

• Instagram: Think of this as your professional portfolio. It’s where people go to see who you are and what you stand for.
• TikTok: This platform is incredible for “virality.” Every video has an equal chance of exploding if it captures attention quickly.

Pro Tip: Don’t overthink your production value. Some of the most successful videos are just someone talking authentically to the camera in their car.

3 Psychology Hacks to Elevate Your Business

If you want to influence how your customers perceive your value, Nathan suggests these three strategies:

1. The Popcorn Box Analogy (Tiered Pricing)

Ever notice how a medium popcorn is only slightly cheaper than a large? This is intentional. By creating a tier system, you make the higher-priced option seem like a logical, incremental step rather than a massive leap. This works for everything from software to professional services.

2. The Power of the Right-Hand Side

Most of the world is right-handed. Tech giants like Amazon place their “Add to Cart” and “Checkout” buttons on the right side of the screen to make taking action as effortless as possible. Look at your website or shop layout—are you making it easy for people to say “yes”?

3. Unreasonable Hospitality

Taking a leaf out of the Ritz-Carlton playbook, “unreasonable hospitality” is about going above and beyond what is expected. Whether it’s a seamless refund policy or a cinematic social media series that tells a story, these touches build a brand that people irrationally love.

Australian Tax and Business Compliance

While marketing brings people in, your business structure keeps you stable. In Australia, it’s vital to ensure your marketing expenses are correctly categorised for the Australian Taxation Office (ATO).

• GST: Remember that most marketing services and physical goods include a 10% Goods and Services Tax.
• Deductions: Marketing is generally a fully deductible business expense, but ensure you keep meticulous records of your digital ad spend and content production costs.
• Interstate Variations: Be aware that certain business taxes, such as Payroll Tax and Land Tax, vary between Australian states and territories. Always check the specific thresholds for your region (e.g., NSW vs. QLD).

Frequently Asked Questions

Is a discount just a psychological scam?

Not necessarily. While some businesses use them as a tactic to create a false sense of savings, a discount can be a legitimate tool to meet market demand and provide value to customers during specific periods, like the End of Financial Year (EOFY).

How often should I post on social media to see growth?

Consistency is the most important factor. Nathan recommends having a strategy—like recording a batch of episodes before launching—to ensure you don’t burn out. Responding to comments is also vital for the algorithm to pump your video out to more people.

What makes a brand “relatable”?

Relatability comes from authenticity. It’s about showing the humans behind the business. Whether it’s sharing a behind-the-scenes win or being honest about a challenge, people connect with people, not corporate logos.

Should I be loyal to one brand?

If a brand meets your core needs at a price you’re happy with, staying loyal reduces “analysis paralysis.” However, always ensure the brand continues to provide the same value and service that earned your loyalty in the first place.

Ready to Grow Your Business?

Understanding marketing psychology is only half the battle. To truly scale, you need a financial strategy that supports your vision. At Latitude Accountants, we help business owners navigate the complexities of Australian tax law while providing the strategic advice you need to thrive.

Contact the expert team at Latitude Accountants today for business advice tailored to your unique situation. Let’s build something great together.

• Phone: 1300706597
• Email: info@latitudeaccountants.com.au
• Book online via our website.
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Disclaimer

The information provided in this post is general in nature and does not constitute personal financial or tax advice. Readers should seek professional advice regarding their specific circumstances and consult with a qualified accountant before making any major financial decisions.