How do you sell a product or service? How do you sell more of what you have? How do you sell it faster and then how do you sell it to more people?
In this article, I’m going to teach you five reasons why people buy. These are not emotional reasons. I will focus on the points of
differentiation in terms of your offer, in terms of your focus, what do you need to focus on? How do you stand out in the marketplace?
How to cut through the noise. How do you make sure that more people will buy from you?
1. People Buy Based On Price
Reason number one why people buy is because of the price.
Who gives me a better deal? Who offers the cheapest price? That’s who I’m going to buy from.
When it comes to your products or services you do offer the lowest price in the marketplace or you offer a lower price compared to your competitors.
That is one reason why people will buy from you. The challenge, when it comes to offering the lowest price, is when you compete by price you die by price.
It is not a sustainable advantage because anybody at any given time could come in and compete with you and offer a lower price. So, whatever advantages you have right now in terms of getting customers and getting market share, there is a possibility that someone comes in and just says, We’re going to offer 10% cheaper, or 20% cheaper than what you’re offering in the market. You instantly lose that competitive advantage. But that is one option. So, think of areas where you buy based on price.
2. People Buy Based On Selection
Reason number two why people buy is because of selection.
We buy from places and companies where they offer a wide range of selections. One of the best examples I could give you is Amazon,
When you want to buy something you would go to Amazon because they offer a wide range of selections. It’s like a local store that you can shop from, and they offer a wide range of selections. You like to go to that store because you don’t need to go here and there. You just go to one place and buy almost everything that you want.
Amazon is a great example. When you need to buy something and you don’t want to make a trip. You don’t want to send someone to get all that stuff.
You just buy the product from Amazon, and they ship directly to your house, besides that they have pretty much everything that you want. You can look at the reviews and you can compare prices.
Netflix is another good example. One of the reasons why Netflix is so successful is because you just go to Netflix and you start to watch movies, TV series from several selections like action and drama..
3. People Buy Based On Quality
Reason number three why people buy is because of quality.
We all want good quality products and services, Don’t you want superior quality in terms of products or services. Maybe you have to pay a little bit more, but at the end of the day, the experience is worth it.
What’s very interesting is as a buyer or consumer, we could be a price buyer in one category and we could be a quality buyer from a totally different category. Just because you buy based on price for certain products and services doesn’t mean you’re always a price buyer across the board.
Ask yourself, where do you buy for quality that you don’t mind spending a little bit more money? For me, I almost always buy for qualities. One thing I’ve learned from buying cheap shoes in the past is that cheap shoes wouldn’t last as long and they would not be as comfortable, and the quality is not as good. But if I would spend more money on a pair of shoes, it is more expensive, but they are more comfortable, durable, they look better, they feel better and they last longer.
So, there are certain products and services that I choose to buy based on quality. People are always willing to pay for quality. There is always a segment in the marketplace that is willing to pay more for premium products and services as long as the quality is good.
4. People Buy Based On Convenience
Reason number four why people buy is because of convenience.
Nowadays, we want something and we want something now. We don’t want to wait. Convenience is a huge selling factor.
For example, you are traveling and you landed at the airport, you go to the hotel, and you’re hungry. But all the restaurants are already closed.
You’re in your hotel room, and you look at the mini bar knowing that what is inside costs four times more than what you could get in some store.
You’re willing to pay more money for convenience, for something that will save you time and a lot of effort. You’re buying convenience.
5. People Buy Based On Personalization
Reason number five why people buy is because of personalized service.
I very much believe now the competitive advantage a lot of companies should offer is personalized service. We are now in the era of personalization.
We don’t just want products for everybody, we want products for us. A brand like Coca-Cola offers those bottles where they have your personalized name on it. It’s a form of personalization.
You would say that’s your bottle of Coca-Cola, although, you know it’s the same thing, it’s just Coca-Cola, it’s a Coke. But that’s a form of
Amazon has a personalized shopping experience. Your Amazon home page is very different from mine. Depends on what products you bought in the past, what’s your browsing history,
Out of those five reasons why people buy, which one should you focus on? Which one is your point of differentiation?
I suggest that you focus on one of them instead of trying to compete on price as well as on quality as well as on selection and then convenience as well as personalized service because when you focus on quality, chances are you need to charge more in order to deliver that kind of quality. You need to charge more money if you want to offer that personalized service.