Tuesday, September 11, 2007

QUIXTAR: Is low price the only reason a customer buys?

Original Source

Is low price the only reason a customer buys?
Tuesday, September 11, 2007 by Susan Julien-Willson
Category: sales, selling, guarantee, risk, buying

When it comes to selling, I use to think people bought strictly on price - whether it was low enough or more importantly, whether a prospect thought it was low enough. A sweater for $39.99 rather than $59.99 has to be a better deal, right? Not always.

I mean, if the sweater at the lower price is not preshrunk, or is not returnable, or is not guaranteed to keep its color wash after wash-but the $59.99 sweater is guaranteed not to shrink or face and is returnable, then maybe lower price isn't what the customer wants at all. Maybe what they want is less risk. What do I mean by less risk? Well, consider this: what's the potential cost if the customer makes a purchase mistake? If the sweater shrinks or fades and cannot be returned, well, they wasted $39.99. If the sweater doesn't fit, then they have a sweater they can't wear. (I suppose they could re-gift it!) If the sweater is indeed a gift and the person they give it to doesn't like it or already has one, they cannot return it. (not very impressive!) Seems there is some risk involved in purchasing the lower-cost sweater. Think about it. If you had a choice, which sweater would you buy? The non-returnable cheapie or the returnable, guaranteed-to-keep its-color, -shape and -size sweater for slightly more? What's the better value? What's the lower risk?

A sweater isn't as critical of a purchase, so the risk isn't quite as much as if you make a decision about a house or a car or a major appliance ... so it's probably safe to assume that different decisions carry different degrees of importance and risk ... to you and to your prospects and customers.

So, if you're selling products that seem to be priced high and you think the price will immediately prevent you from making a sale ... consider worrying less about the price and focus on easing the risk. So how can you lower risk and encourage someone to purchase a product you're selling? I have a few ideas, but I hope a few readers will comment with some of their own.

To sell more, build relationships with prospective customers and current customers. The greater the relationship you have, the more chance you'll have of selling products to a person . .. they'll trust you and the perceived risk will be next to none. I know when I sold clothing, my regular customers trusted me to find and sell them quality clothing that would fit and flatter ... and last through frequent wear. Perhaps, you've had similar experiences with your loyal customers.

Use testimonials, spokespeople, and research/competitive comparisons in your sales conversation. Think about it. If lots of people use a product or service, there must be some merit to the product or service. (I love reading IBO success stories at Quixtar.com--you can find 'em in most every category, but the ones that come to mind are those about Ribbon ... you'll find them in Step 8 of the Steps to Success as a PDF Other testimonials online are for clear.now, Time Defiance, and Tolsom. Check 'em out. I love reading testimonials and tips in fashion and beauty mags, too. In many cases, it has motivated me to try a product. Have you had this happen too?

Let prospects try out a product. If I can touch, feel, see, or try on something, I get more interested ... I ask questions. I experience what a product is like and what it can do for me. Bet that others may feel this way, too. For clothing in a store, it's easy. You can have them see it, touch it and try it on. For products you sell from catalogs and a website, you need samples. It can be as simple as a food bar or energy drink. If I visit a grocery store when they're giving out food samples, I inevitably end up buying something that I hadn't planned on or was definitely not on my list. Can you relate?

Here's something else you might forget to mention that definitely lowers risk ... it's the 180-day satisfaction guarantee at Quixtar. Do you tell customers about that? It might be worth mentioning if they seem to wince at the price or the quantity.

So, what else could we do to lower risk when it comes to buying? Hmmmmm. I can't seem to come up with any more ideas right now. How bout you? Got some ideas to share? Please do!

4 comments:

Anonymous said...

How bout this, you spend 5 years building a very successful platinum business and then you find out that Quixtar must have no control over their process because you were doing it wrong. Many thousands of us doing it wrong???!!! Come on, they can take your business anytime they want. It has nothing to do with prices and everything to do with freedom. You know what the difference is between a good job (IBO ship) and a bad IBO ship? Who ever is in Quixtar legal at the time.

Canadian IBO said...

Original: Thanks for the comments you made about the reasons a customer buys. Lots of good points you bring up.
You are right that building relationships is key to successfull selling. Most IBO's who have trouble should maybe read some more books. "HOW I RAISED MYSELF FROM FAILURE TO SUCCESS IN SELLING"- by Frank Bettger is one of them. Also get to know your products and how to demonstrate them. The new education areas of the Quixtar site is fabulous for new people (Quixtaruniversity.com)and I am excited (but cautious I admit)about the transformations to take place. I did a price comparison today about Paper Products at three separate Canadian Stores (including Walmart) and found Meadowbrook Paper Towels and Bathroom Tissue a better buy even at full retail. Remember compare apples to apples...You can see my comparisons in a different subject blog on this site (paper trail continues). Anyways great comments again

To anonymous: Your comments have nothing to do with products or pricing, so I won't comment much only to say that only those who step outside the rules of conduct will ever lose their business. Build it right and there is no problem. It seems you are with TEAM and that is great- Don't get me wrong I have seen Orrin Woodward at one of our Summer Conferences and have great respect for him and I am sure he is a great leader. I have also seen Larry & Marcie speak as well as Bill & Jackie Lewis and find them great people as well. It appears that most of the issues going on today are again about Tools etc. just like it was back in the 70"s and 80's....Same story different time frame. Anyways if more IBO's would build via PRODUCTS-SPONSORING-PERSONAL & PROFESSIONAL DEVELOPMENT instead of the opposite more people would be profitable. There are just as many TEAM members quitting this buisness as any other LOA I am sure..You say it has nothing to do with prices then why are so many complaining about the prices..

Anonymous said...

to canadian IBO...

The comments you make are great, but here is the skinny. I think you need to read the Cashflow Quadrant by Robert Kiosaki or maybe the Business School for People who like helping people because you would find out what is important about building a successful MLM business... As far as learning how to demonstrate products... How do you demonstrate breakfast cereal or pop tarts???? How bout paper plates, or toothpaste. Let's face it, a successful, non market responsive business is built on consumables, not core line products. People use toilet paper whether they have a job or not. They don't use Double X, or Artistry, or even XS. The basic household consumable products are impossible to demonstrate as higher quality than the comparable product at Walmart.

You are the first person I have ever heard say the prices were better at Quixtar than at Walmart for the comparable products. Maybe I should send all of my IBO's in Michigan to Canada to compare their prices so they won't complain EVERY TIME about the prices.

And as far as the TEAM approach goes, you have to be off your rocker to even think that this was or is an illegal building practice. Quixtar has come to many of our functions and backed us as the fastest growing organization in the US. Why only when Orrin, Chris, and Tim, Billy, Randy, and the others were willing to stand up to the big Q, was it brought out that the TEAM is a disgrace to businesses built since the 50's???? Don't you think that they have been watching the TEAM explode for ten years and can see the shape of the LOS??? It is NOT illegal and I'm tired of hearing people even mention it...

I for one am very disgusted with the actions of Quixtar. I have defended that company from stage in several states and in living rooms all over the midwest. And now, when they are challenged on something that any common sense would say is a good business move... Lower prices, they have the hubris to turn on my leaders like a pack of wolves!?!

The question isn't that you can convince people to buy the greats products, because they are great core line products, the question is why should I have to spend time everynight away from my wife and kids, convincing someone to buy Double X, when, if the prices were right, I could slap down a catalog with better than walmart prices when I registered them and show them a savings before they get their 21% bonus level and get WAY more people interested??? Why wouldn't that be good?

I hope for your sake, that because of the deceitful things the Q has done in the last month, they haven't closed themselves in a corner legally. But if I weren't in the TEAM right now, and I saw the events unfold as they have. I would be very afraid of the status of my own business... Quixtar legal could look at you next as IBO property... I am sure that they have built your business for you, RIGHT?

JC - Team 3D

dart said...

Great comments JC and I ditto everything you have said. Let's all remember that it was all of us helping Quixtar become the 600lb Gorilla that it has become. We have all be lied to - I was told I was a Independant Business owner, Also I have never been in Amway and didn't sign up to be in Amway. So tell me who decided I was a distributor and registered with Amway without asking me if I wanted to OR not? EVERYONE PAST AND PRESENT should be upset with Alticor. TEAM will make this a better business for everyone we should all be rallied behind them. Stand up for FREE ENTERPRISE isn't that what you've been told since day one from every CD, book and mentor you've had? STAND UP for what is right. Don't bury your head in the sand by complaining. EVERYONE knows the prices are very high, you always spend more money trying to get your points to reach the next level. Don't kid yourself. STAND UP FOR RIGHT/FREE ENTERPRISE. I am sad that it has taken me this long to see the light, but after you have built a business put a bunch of money into it-they've got you. Kinda sucks don't you think?
TEAM is a honest ethical group of leaders that I am proud to say I believe in them and trust them. It is great to know that their are people out there trying to help people and make things GREAT. NOT Good GREAT. It's not going to happen over night and it has already taken years but at least they have been trying to make a difference and have every willing person/leader WIN. Thank God for people like Orrin, Lori, Chris, Terry, Randy, Val, Billie, Peggy and the many others that have taken a stand. I pray they will continue to be the men and women they were intented to become. Thanks TEAM --- TRAD/PROUD TEAM BUSINESS OWNER