You have likely heard the expression people buy with emotion and justify with logic. It’s true..
I am often told that customers buy based on price and to some extent there may be some truth to that rumour, but study after study tells me customers buy confidence, selection, features long before they look at price. I want you to seriously consider the following in your own life:
When you buy a house do you buy the cheapest one or do things like location, neighbourhood and “built in” features play a major role in your decision?
When you buy a car do you buy the cheapest one or does service, style, size, and efficiency play a role in your decision?
When you buy formal clothes (i.e. suit or dress) do you buy the cheapest on the market or do fashion, fit and brand play a major role in your decision?When you buy any product do you buy the “absolute cheapest” on the market or do you think that the cheapest is often a statement inherent quality?
Actually cars are a funny one because there are many people who own two cars yet they leave one in the driveway all day as they take the bus/subway to work. My point is, I don’t believe you and I buy based on price and neither do our customers. I believe there are two reasons why our customers buy based on price
They don’t have any attachment with the decision therefore they don’t care about the outcome.
You didn’t give them sufficient enough emotional reason to buy specifically from you.
When customers don’t care about the decision that usually indicates that they have nothing vested in the outcome. That is why purchasing departments are often difficult to deal with (or the boss who has nothing to do with the product/service being purchased). When dealing with these people ask what would they care about and then sell specifically to that. If you don’t get them involved in wanting to be part of the outcome then YES you may have to become the lowest priced on the market to win the business.
The two emotions that drive almost every buying decision is DESIRE and FEAR. Customers care about being recognized, admired, having a sense of belonging or they care about making a safe, secure, smart decision. If you listen to what they say you will hear where their emotional connection is. If a customer wants to be the coolest then most likely they don’t care about the warranty so don’t create confusion, sell specifically to the emotion they need to feel.
Does that mean our customers will always buy if we figure out their emotional trigger? No, every customer has a certain amount of time and money they are willing to invest in order to achieve the feeling they want. Your challenge to figure out where that threshold is. You have likely heard the expression people buy with emotion and justify with logic. It’s true. Find their emotional reason then back it up with logical evidence to support their decision. If the customer is emotionally attached enough they will help you support their decision.
As Harry Beckwith says, “Price is often the reason given but seldom the answer, LOOK DEEPER!”