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!