Many businesses today make the mistake of believing that their pricing is what convinces a customer to buy a product from them instead of a competitor. If price was the most important selling point for a customer, then there would be fewer businesses selling expensive items. But this is not the case at all.
In reality, there are several other factors that customers take into consideration before deciding whether or not to make a purchase from one company versus another. Price is one of the last things that come into play when a customer decides to buy and even then, it plays such a small role that it should not be your main concern in developing your sales plan.
According to research, 94% of purchase decisions in the United States are based on factors that do not involve the price of the product or service. Finding out what the non-price reasons are for someone to make a purchase is the first step in developing a winning strategy. With that information, you can emphasize those factors in your sales conversations with customers and drive more closed sales.
So, what are those other selling attributes that matter more than price?
1. Quality
The number one thing that a consumer considers before making a purchase is the quality. Does the product meet their standards and requirements? If you ask almost any person if they would be willing to spend more on a product that they consider to be of higher quality, their answer will be yes. Many people want a good deal, but few are willing to sacrifice quality to save money.
2. Delivery
When a customer chooses to buy a product, they want to know that they can expect delivery to be consistent, dependable, fast and predictable. This helps to build value in the eyes of the customer. Look at the example of Domino’s pizza. The company focused mainly on the speed and predictability of its pizza delivery by promising pizzas delivered in 30 minutes or less or it’s free. Now, Tom Monahan who started the company has retired as one of the richest men in the world.
3. Installation
Installation is something that many consumers consider when it comes to items like flooring, appliances, and especially technology. Professional installation offers the consumer peace of mind knowing that the product is properly installed, saving them time and worry. Even though this might cost more, most customers believe it is worth it.
4. Service
Good service speaks volumes. When a customer finds a company that offers excellent service, they are willing to go far and pay more to get it. Think of car owners who are willing to drive across town to get their vehicles serviced through their dealership instead of opting to go to the quick lube on the corner. Sure, it might save them time, gas and money to go somewhere else, but why do that when you are confident in the service that you have been getting all this time?
5. Simplicity
People want their transactions to be as easy as possible. Don’t make it complicated. Don’t create more hoops to jump through. Keep it simple: billing, interest rates, down payments, returns, and service.
6. Support
This is especially important when it comes to technology. Remember that customers are coming to you because you are the expert. If they have any issues, make sure that they have the support they need to get back on track.
7. Responsiveness
In today’s world of instant response, customers expect the same kind of responsiveness from any company they interact with. This can be through email, on the phone, or through social media. If they have questions, problems, compliments, they want to get a reply back in a short time. Do what you can to stay connected and available to your customers. Even if they encounter a problem, working quickly to help them can take a negative situation into a positive experience.
Remember that pricing plays a small part in the decision-making process for any customer. Focus more on the key attributes that have nothing to do with price and you will create a smoother sales process for your team and your customers.