What Makes People Buy?

Most every worker in a retail or service industry is wondering what makes people buy? If they are not they must be pretty good at sales or perhaps in the wrong line of business. In most economies sales and service industries operated by small business owners are a driving force yet so very vulnerable.

Not knowing the reasons the customer will buy or what products and services they want can quickly run a small business into trouble. Small busiesses generally have less resources and every sale has a much greater impact to the lifespan of the company.

Thus it is wise that these businesses ask questions such as these on a regular basis to themselves as a management group, to their employees and also to their most valuable asset - their customers.

What really makes people buy a product or service? Who is the real competition? What does the customer truly desire from a product or service? What things can be eliminated because the customer does not value them? Can their level of satisfaction with these products or services be increased and will this effort retain their business or not? How much emphasis is placed on price, product or service?

A company can not build lasting success with successful sales for products or services a customer is unhappy with. It is easier to simply produce what the customer wants, at a price they are willing to pay for it when they want it.

Here is what I have found to be true:

I buy because:

1. I buy because I need a product or service that will perform or provide something useful for me that I can not do with out it: Example: I buy car insurance because it is required to register my car and it will provide financial security from a lawsuit if I get in an accident. I may buy a flat iron or blow dryer for my hair because I want it curly or straight and I cant do it with out the product and it makes me look and feel good but the price has to be right and I must feel the product is the very best (high quality, won't have to be replaced for a long time) to do the work and won't harm me or damage my hair. A name brand or revolutionary product that gives me prestige is also a factor. I like to have trendy stuff others don't because its fun to show or talk about the latest and greatest product or service.

2. I buy when something is on sale and a good deal when I may reasonably use the product or service and it provides and incredible opportunity like: A designer silk pant suit for $39.99. I don't need it but its a good value and and incredible opportunity so I buy. Or a time share that would save me $2000 per year on vacations or business travel expenses. It has an advance cost of lets say 4k but over the 10 years I will have it I will save over 6k. That will make me buy if I can afford the payments and the company is reputable.

Do you know why your customers buy?

Here are some clues from "Little Red Book of Selling" that may help you see if you do or don't know why your customers buy:

1. You get price objections
2. You have to send bids or proposals
3. They claim to be happy with others
4. No one returns your calls
5. You are complaining that the economy is slow

So why do you buy?
Do you have all the customers you want?
If not why?
Business is being conducted - are they using you? If not why?


If you want more info on the Little Red Book of Selling contact www.gitomer.com - I bought mine at the airport and love it.

Enjoy