Monday, July 18, 2011

Sales Logic

What makes us want to buy something?
Logically thinking it is the basic thought that your life will be better with a product or service than without it.
What this means is that the Return on Your Investment = Value. Your "return" is the product or service you purchased and the "value" is the quality that product or service brings to your life. So obviously you want to make a good investment when you purchase a product or service.

As a seller of goods or services, you probably ask yourself, "Why would someone not buy my product or service?" To put it simply, it all boils down to one simple point: The perceived Risk is greater than the perceived Value. The Risk in 90% of all purchases is the amount of money the customer would invest. When presenting your product or service, the Value must be greater than the Risk for the transaction to take place.

Two Easy Ways To Overcome Risk vs Value
1. Differentiate yourself. The more unique or customized your product or service is, the higher the perceived value.
2. Create a need. Demonstrate what would happen if the customer chooses NOT to purchase your product or service. For example, your customer's situation could worsen or cost them even more money down the road. This technique is used often for health care products,  home maintenance services, and insurance plans.

At the end of the day we all have something to sell. And when you take "Risk" out of the equation, it make the decision to buy that much easier.

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