Why do customers buy? How to increase sales without cutting your price
Most business owners, entrepreneurs, and managers desire to increase sales without discounting prices. But they think that people will only buy from them if they offer low prices. But there are many other reasons people buy a product or service. Knowing these reasons keeps your company profitable and free from debilitating price wars.
Product or service meets a need
Do people want the cheapest product or the one that most effectively meets the need? Do you know someone who wants to buy a smartphone without a camera to save money? People need the best camera phones. What are about health products, home repair products, clothing? Think about your customer needs.
Your job is to focus on a target audience. If you sell camera phones you should ignore people, who buy mobile phones to make a call or to send a message.
You must know the needs your product meets, the problem it solves, the solution it provides, and how much better it will make people’s lives once their need has been met.
Product or service is an investment
For some products and services, many buyers make purchases because it is an investment. This is why people pay to attend conferences related to their industry, make investments in their health or their home. Anyway, they make investments in their future.
It is a good idea to sell something that could be seen as an investment to a buyer.
The bigger the ROI of the solution, the less relevant your price becomes. And tying those benefits to your differentiators gradually pushes the other choices (specifically, the lower-priced competitors) entirely off the table.
On the other hand, some people want immediate pleasure instead of obtaining a valuable and long-lasting reward in the long term. This is why this reason doesn’t help in some cases.
The high-quality product
The quality is worth the higher price. On the other hand, focusing solely on price and choosing the less expensive item can actually come at a cost. You should illuminate the qualities of the product or create different associations between your life and the product. The ‘coolness’ factor associated with a product could drive the price up. At the same time, a product may be the best performer, but it never catches on because the company didn’t successfully woo a customer in. This is why you must know your product or service as well as your customer needs.
Anyway, most people would prefer to pay a little more for something that will last.
Products should be convenient
So many things take much longer to deal with than we want. Any product or service that can save us time and frustration warrants serious consideration. And if it can deliver in a big way, it’s worth paying for, and the price isn’t going to deter us.
Convenience is one of the most powerful reasons why people buy products and services. Also, it is a good idea to simplify the buying process for customers.
You can build your SEO marketing strategy around convenience. Our experience of providing on-site SEO services proves that this approach works great. People often look for information on how to set up things or fix them.
Products improve security or privacy
All things are not equal. Often people choose things that provide more security and privacy than others. Because security is a significant motivator.
And this applies to services, too. A promise not to share information on an email signup form, for example, is an appeal to people’s desire for privacy and security.
Products people just desire
There are many products that people sure want to buy, and they can give up most of their remaining money to get them.
People will buy things for no other reason than that they want them. If you sell products that fall into this category, don’t be shy about it. Not every product has to meet a need, have some lofty purpose, or express some cultural ideal.
Sometimes, people just want to buy a shiny bauble. But if you sell a unique shiny bauble, you can increase your price a lot more.
Products contribute to a person’s identity
Walking down the street, one may observe an individual sporting a Yankee sweatshirt, carrying a Starbucks coffee mug, and wearing a pair of Levis jeans.
People buy products that express something about their identity. This could be based on their culture, sports club, language, religion, etc. It could arise from a local community or business group they’re a part of.
Identity is powerful. The products people buy can act as signals of identity, allowing consumers to construct, express, and communicate useful information about their self-image to themselves and to others. Consumers not only purchase products but lifestyles. Sometimes, you should make your business and its products part of the identity of your customers to be successful. Once you achieve this goal, the price of your product becomes a much less important factor when people buy from you.
Product impacts someone’s social dynamics
The greatest motivator for many people is how your product will make them look to others. Related to this is the fear of missing out — FOMO marketing.
But social status is more than just a fear. Someone might buy a car, clothes, device because of the statement they think it makes. Lots of people share photos of their food, clothes, cars on social media to highlight their social status. So social status can align with identity and values, too.
Nobody who takes pictures of their food or cars also talks about the price.
To sum up
Price is a factor but it shouldn’t be the first thing buyers think about. When your banners are screaming about discounts this site announces a business that has nothing else to offer besides low prices.
People use emotions and rational motivations minds when they’re deciding what to buy. What you sell can have value. But it is a challenging task to create a great copy. Your headlines, subheadings, offers, product descriptions, and calls to action must be written with buyer reasons in mind. Focus on the benefits you offer and your customer.