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’ve got other videos that I talk about that, but today 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 noise, right? How do you make sure that more people will buy from you? So, let’s get right into it.
Reason number one why people buy is because of price. Comment below if this is how you buy and how you make your buying decisions, based on price. Who gives me a better deal? Who offers the cheapest price? That’s who I’m gonna buy from, right? 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 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 come in and just say, 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. 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, 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 they offer a wide range of selections.
You like to go there because you don’t need to go to here and here and here and here and here. You can just go to one place and buy almost everything that you want. So, Amazon is a great example. I remember when I need to do something now, when I need to buy something, I’m like, ah, you know what? I don’t want to make a trip.
I don’t want to send someone to get all that stuff. Maybe just go to Amazon, buy, and ship directly to my house, and pretty much has everything that I want. I can look at the reviews, I can compare prices.
Great. Let me give you another example. Netflix. One of the reasons why Netflix is so successful is because now you can go to Netflix and you can just watch. You get a lot of selections, right? What type of movies that you want.
You like action movies? They’ve got a ton of those. You like drama? They’ve got a ton of those. You like TV series? They got a ton of those. So, that’s the second reason why people buy. Reason number three why people buy is because of quality.
We want good quality products and services, don’t you? Think about in your own life who do you buy from? Don’t you want superior quality in terms of products or services that maybe you have to pay a little bit more, but you’re like, you know what, it is worth it, 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 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 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 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, 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’s 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, services.
They don’t mind it as long as the quality, it is good. Reason number four why people buy is because of convenience. Nowadays consumers, we want something and we want something now. We don’t want to wait.
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 costs 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. For convenience. 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. In fact, people are willing to pay quite a bit for convenience.
So, comment below. Where else in your life that you buy because of convenience? Amazon, besides selection, they also offer convenience. It’s simple. 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. Convenience. 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.
Even think of like Coca-Cola, a brand. You’ve seen those bottle where they have your personalized name on it, right? 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, think about that, personalized service. I’ll give you a perfect example. Jenny and I, we have a personal shopper at Heart of Renfield, and she offers personalized service.
Example, she always goes the extra mile. Whenever there’s a new product, without us going to the store, she will send us pictures, hey, we’ve got this new suit, we’ve got this new bag, we’ve got this new jacket, whatever it might be, we will take a look.
And then, we can say, okay, you know what, that’s cool. If we do like it we have our credit cards on file and she could just bill the credit card, she will bring it to us, to our home, dropped it off to a concierge.
We could try it on. If we don’t like it she could come to concierge and take it back. It saves us a lot of time. It’s a personalized service. When we go to the store, when we buy a bunch of things, she will also put all of that together and then deliver to our home without us carrying all the bags and stuff like that.
We could just keep shopping. It makes our shopping experience more enjoyable, and also saves us a lot of time, as well. See, personalized service. 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 in order 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. So, you now know the five reasons why people buy. The next question you might have is, Dan, how do I implement this in my career? How do I implement this in my business? Exactly what do I need to do? That’s a very good question.
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