Why People Buy...Understanding Your Customer = More Sales, Better Profits

Why do people buy your product? There are thousands of reasons, but surprisingly few motivations. Knowing what those motivations are can help you sell your products and services more successfully. Many think that price alone is the most important factor in a deal. While price is a factor in every deal, it is not the primary motivating factor in most of them. Let's deal with several that often motivate sales more than price. Remember, you only need one motive to close the deal.

Convenience – A customer motivated by convenience loves the fact that you have what he needs, you know what he likes and you can process his order without a lot of hassle on his part. He is usually too busy to talk for very long and appreciates that you understand that and can supply what he wants. Think of the “one stop shopper”.

Service – This customer is related to the one motivated by convenience. He wants you solve the problems and provide what others can't, or won't. He doesn't want to have to hold your hand through the deal, and is definitely not a “DIY” kind of buyer. You won't see this customer bagging his own groceries at the store.

Compliment – You can gain the ear of this buyer with a sincere compliment. But don't try empty flattery. If you point out what a lovely yard they have, and it is filled with junk cars and old refrigerators, you lose. If you tell that same customer that their things are too valuable to leave unguarded, you may just sell them a fence. (If it is 6' privacy fence you can collect extra commissions from the neighbors!)

Security – This isn't about access control. A customer motivated by security wants to know that you have the right product for the job, you stand behind the product, and you have been around long enough to have a solid track record. (This little pig builds his house out of brick!)

Performance – A customer motivated by performance is interested in knowing that the product will live up to expectations and has a track record of doing so. It is made right, of the right materials, and is designed to do everything he needs it to do.

Power – A power motivated buyer wants to know they are in charge of every aspect of the transaction. They need to know that you know who is in charge. Communication is critical in a deal with a power motivated individual. They are the decision makers, your job is to direct the deal by asking the right questions to get them the answers they want.

Order – The purchase order number must be on the invoice, the part numbers must match the quote, the order must be there on the specified date, and if you have an appointment with this individual, you want to be on time! (That means 15 minutes early to some, you'll have to figure that one out!) Purchasers motivated by order typically also like stability. Changing vendors can be messy. If you can prove that you can fulfill that need for order, you will likely keep this customer forever. Or at least until the order is disrupted.

Price – This is the common denominator in all deals. If it is the only motivation you can find for a buyer to do business with you, prepare to live on very tight margins. If you can identify and meet one or more of the other motivations outlined here, price becomes secondary. People are willing to pay for the things they need. They only demand lowest price when they don't see you meeting any other motivation they have.