Why Do People Buy?

It seems a simple question. But is it really?
To Fill a Need
Well sure, that’s the simple answer. But consider this example.
You’re buying a car. Your need is Transportation. A car’s purpose is to get you from point A to point B, safely and in relative comfort.
So why buy a Maserati rather than a Nissan? Both fulfill your transportation needs, but the Nissan does it at a third the price.
Psychological Gratification
Buying a Maserati feels different than buying a Nissan. Driving a Maserati feels different than a Nissan.
Not literally the feel of the car on the road. But piloting a $100,000+ marvel of Italian engineering feels different than merely driving a $30,000 Japanese car.
A Maserati projects a different image than a Nissan. It says something different about you. Piloting a Maserati is simply more gratifying.
Psychologically the Maserati experience is light years beyond mere transportation.

Why You Buy Isn’t Just a Matter of Image

Even if you’re not in the market for a Maserati, you still don’t want to buy cheap sh*t. You want a bargain.
You want the best possible products and services you can get for the lowest price.
Getting a great bargain – a great value – feels (almost) as gratifying as piloting a Maserati.

Let’s consider a case study in the retail realm…

Case Study: Discount Women’s Clothing
Two discount women’s clothing stores opened next to one another.
One store positioned themselves as seller of discount clothing. The store and its sales staff are no fills. The image the store projected is: This is where you come to buy cheap sh*t.
The other store takes a different approach. They hired a strong, motherly woman to be their general manager and public face. They used her photo in all their promotions. She signed all the ads and sales messages. She addressed customers as friends. She understood the struggle of trying to look your best on a limited budget. And she offered a solution. Quality clothes at bargain prices.
Not surprisingly, the store hawking cheap sh*t withered and died.
Psychologically the experience the bargain hunters store offered was light years beyond the cheap clothing store.

How to Position Your Products & Services

Selling purely based on price is a race to the bottom. Someone else will always be cheaper. Even if it’s just to undercut you.
And the more you cut your prices, the more you’re inclined to cut corners. “Hey, this is discounted! Do they really expect the ALL the bells and whistles?” (Yes, they do.)
And the more resentful you become of your customers. “They’re getting this at rock bottom prices and they STILL don’t appreciate the value.” (No they don’t, because the bought strictly based on price.)
Instead, sell based on value. And increase that value by offering a discount. Your customer is getting more for less, which makes your product or service that much more valuable. It’s a bargain.
Positioning is the key. Your products and services are a bargain. They’re not (nor have they ever been) cheap.

What About You?

So the question remains. How are you positioning your business? Are you cheap or a bargain? Stop by my Google+ page and share.