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?
Today I’m gonna teach you five reasons why people buy.
Now, these are not emotional reasons. I’m not gonna talk about that.
I’m gonna teach you 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 nose, right?
- How do you make sure that more people will buy from you?
5 Reasons why people buy
The first reason why people buy is because of the price.
Whenever people want to buy something and they look for product and service in the market, they think that –
- Who gives me a better deal?
- Who offers the cheapest price?
That’s who I’m gonna buy from, right? I am going to buy with the lowest cost.
So, maybe 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.
Yes, 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 the 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, someone comes in and just says, hey, you know what?
We’re gonna offer 10% cheaper, 20% cheaper than what you’re offering right now.
You instantly lose that competitive advantage. But that is one option.
So, think of areas where you buy based on price.
We buy from places and companies where they offer a wide range of options or selections.
One of the best examples I could give you is Amazon, right? When you want to buy something you would go to Amazon because they offer a wide range of selections. Or maybe there’s a local store that you go to that offer a wide range of selections.
You like to go there because you don’t need to go to multiple places. You can just go to one place and buy almost everything that you want.
So, Amazon is a great example.
Let me share my experience with you when I need to buy something, I generally prefer shopping malls where I get selections. I don’t like to move to multiple places. I want all stuff in a single place.
One of the best options for me is just to go to Amazon, buy, and ship directly to my house, and I can find anything and everything at a competitive price on Amazon.
I can look at the reviews, I can compare prices. It helps me in taking the correct decision.
Let me give you another example.
Netflix. One of the reasons why Netflix is so successful is because it gives a lot of selections, right?
What type of movies that you want.
- Do you like action movies? They’ve got a ton of those.
- Do you like drama? They’ve got a ton of those.
- Do you like TV series? They got a ton of those.
So, that’s the second reason why people buy.
We want good quality products and services, don’t you? Think about in your own life who do you buy from?
Do you purchase cheap quality Made in China products or Superior quality Indian products?
Don’t you want superior quality in terms of products or services? You will be ready to pay more as you are getting value, right?
The experience is worth it. You’re willing to spend a little bit more money, but what’s very interesting is this.
As a buyer, as a consumer, we could be price buyers in one category and we could be quality buyers from a different category.
Just because you buy based on price for certain products and services it doesn’t mean you’re always a price buyer across the board.
It’s very, very critical. So, think about in your own life, where do you buy 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, example, like for shoes, I used to buy cheap shoes.
I thought it doesn’t make a difference, right? But what I notice is when I buy cheap shoes they wouldn’t last as long and they would not be as comfortable.
The quality is not as good. Now if I spend more money on a pair of shoes,
yes, it is more expensive, but they are more comfortable, they’re more durable, also, they look better and they feel better and they last longer.
So, there are certain products and services that I choose to buy in my life based on quality.
People are always willing to pay for quality. There’s always a segment in the marketplace that are willing to pay more, in fact, a lot more, for premium products, and services.
They don’t mind it as long as the quality, it is good.
Nowadays, consumers, want something and we want something now.
We don’t want to wait. It is a mobile generation. Everything should be instant like Fastfood and Maggie.
So, convenience is a huge selling factor.
Imagine this, you are traveling, right?
You landed at the airport, you go to the hotel, and then, you want to eat, you’re hungry.
But all the restaurants are already closed.
You’re in your hotel room, you’re like, oh my god, I need something to eat,
and you look at the mini bar knowing that, what are you talking, that chips cost like two, three, four times more than what I could get in some store.
What the heck is this? But you know what?
You’re hungry and you want some food. You’re willing to pay more money for what? It’s the same product.
People are willing to pay more for convenience. Something that will save them time, that will save them a lot of effort.
So, convenience is a huge selling factor.
So, why are you willing to pay three or four times more for the same product that you get somewhere else?
You could easily go get in a car, get in a Uber, and go get it, but you’re like, I don’t want to move, it’s late at night,
I’m tired, I’m exhausted, I just want something.
A quick bite, I just want something to eat.
That’s perfectly fine. You’re buying convenience.
So, people are willing to pay for convenience.
People are willing to pay quite a bit for convenience.
Amazon, besides selection, also offers convenience.
- I don’t need to go somewhere.
- I don’t need to get in my car.
- I could just go to my phone, I could go to my computer,
- I could go to my iPad and just order from there.
So, that’s another selling advantage that they have.
#5 Personalized service
I very much believe now the competitive advantage. We are now in the era of personalization.
We don’t just want products for everybody, we want products for us.
Even think of like Coca-Cola, a brand. They provide customization. You can get a coke bottle with your name on it.
It’s a form of personalization.
That’s my 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.
Even for something like this people want personalization.
You think about Amazon, you go there, it is 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, right?
So, out of those five reasons why people buy, which one should you focus on?
Which one is your point of differentiation?
I suggest 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 to deliver that kind of quality.
You need to charge more money if you want to offer that personalized service.
So, focus on one of these.
Now, you know 5 reasons why people buy. Try to get maximum learning from the above and implement it in your business.
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