Sometimes entrepreneurs and business owners get fooled by the notion that low prices will make people buy. However, price is not the only reason that people purchase a product or service.
If this were true, the house brands at the lowest prices in grocery stores would always outsell the names brands. Nearly everyone would prefer to buy coffee from a can rather than buying it at their local specialty shops, where it is ten times more expensive. People would rather drive than fly. People would never eat at restaurants because it is cheaper to make their own meals.
You will see that there are many other reasons consumers purchase products and services than price.
These factors should be a major part of the language you use to market your products.
There will always be another business that charges less than you. Do not get so caught up in the race for the bottom that it is impossible to win. It will eat away at your profit margins.
Let’s take a look at the ten main reasons that people buy products that can be used to overcome price resistance.
1. They are high quality
Many people would rather pay a little more to get something that will last.
Paint brushes can be purchased at hardware stores for as little as a few dollars. The bristles can start to fall out after the first use. They also don’t paint as smooth or as easily, particularly when you are painting around corners and edges. These brushes are only intended to be used once, so it will be more difficult to do the same job again.
You can also buy brushes at paint shops for ten times the price. They can be re-used dozens of time and work well even in difficult to reach areas. It is well worth the extra cost.
Customers will be more willing to pay more for your product if you emphasize the quality.
2. They fulfill a need
There are many other needs than water and food. We need many things, including clothing, health products, and home repairs products. Do we want the lowest-cost product or one that meets our needs the best?
As water. The majority of the U.S. has tap water. It is almost always free to drink. Bottled water would be almost impossible to find if people were only interested in the price. It’s still a huge industry.
It is your job to be focused on the needs of the product, the problem it solves, and the solution it offers. Once they have been satisfied, you need to think about how it will make their lives easier, better, stronger, quicker, happier, simpler, and more enjoyable. This will earn customers more.
3. They are an investment
B2B products or services are especially popular because many customers buy them as an investment. This category includes online courses. Online courses are not necessary for everyone. However, the knowledge they will gain is valuable and well worth the cost. People pay for conferences and books that are related to their industry.
You can also invest in your health. They can also invest in their homes. They can also invest in their future. Investments are not always financial.
Use this phrase in your marketing language if you are selling something that can be considered an investment for a buyer.
4. They are a part of a person’s identity
Products that reflect their identity are bought by people. It could be based upon their culture, language or religion. This could be due to a club or organization they belong to. They could be a member of a business or group that has this effect.
It is powerful to be identified. This is what you hear in marketing. Your community is your identity. You can get people to your business. When you do that, the price is no longer an important consideration when people purchase from you.
5. They are in line with the values of people
While values are different from identity, the power that underlies them is very similar. Values are based on our beliefs and passions. They reflect how we view the world and how we want it to be better.
Marketing today is centered on the common value of environmental sustainability. While not everyone is interested in this, many people care about it and look for products and companies that share their values.
6. They are convenient
People buy products and services because they are convenient.
It is hard to live a happy life. It is frustrating how much time we waste. Many things are more time-consuming than we would like. Any service or product that saves us time and frustration is worth considering. If it delivers in a significant way, it is worth the cost.
This is the most important benefit of software products and services. “Look at how much time you’ll be able to save!”
People will pay more for rush shipping because of convenience and sometimes, need.
Smart marketers will find ways to appeal to multiple buyer motivations with the same product. It’s easier to buy for quality than it is to replace or repair the product. A buyer will be happy if the product meets their needs and is in line with their values. The price will almost be an irrelevant factor.
7. They have a profound impact on the social dynamics of an individual.
A second reason consumers buy your product is how it will look to them. Fear of missing out — FOMO — is also related. This widget is available to everyone else, so I also need it.
Social status is more than fear. A person might purchase a car based on the statement it makes. People choose clothes that are distinctive or convey a message. Social status can also be linked to identity and values.
Many people enjoy eating food and then sharing their thoughts on social media. Why? They want others to see the delicious meal they just bought so they can wish they could try it. How many people take photos of their food and also discuss the cost? Very few.
8. They are for children
This applies to more than just parents. This applies to all family members, grandparents, uncles, and friends who come to their birthday parties. It even applies to coworkers.
What is the motivation for parents to buy children’s toys? It might be important to consider the price. What role will the gift play in the child’s life? Price may be important. The following are the top three reasons to buy gifts for children:
Educational toys and experiences are a way to help children develop their brains, make them more intelligent, and improve their reasoning and thinking skills. With a book, puzzle, game or ticket to the science museums, you are shaping that child’s destiny.
Children buy experiences because they want to leave a lasting impression. They want their child to grow their horizons, experience new foods, visit new places, explore new cultures, and learn new skills. Because they gave it, they want the child to be able to recall and associate the memory with them.
People buy things that children will love. It’s great to see the child smile and be happy when they receive the gift, even if it costs ten times more than the original budget.
9. They increase privacy and security.
Which lock would you choose? A $20 lock or a $50 lock for your front door? It’s impossible to say “Well, all matters being equal, I’d choose the $20 lock.” Because all things are different. The second lock is more expensive because of this. The second one is likely to have stronger metals, more durable parts and more complex locking mechanisms that make it harder for thieves to pick. It may also look better because of its social status.
Good door locks are attractive for their quality, investment (look at the things it protects), security and values as well as their social status. It also meets a specific need.
GPS tags are available for some products. This can be a security incentive as the GPS tag can be used to locate the wearer if they are lost. These are often found in backpacks for kids and outdoor clothing. However, this can be a deterrent from a privacy perspective — not everyone wants their location tracked.
Sometimes privacy and security can be inseparable, while other times they may be at odds. There are products that can appeal to both of these and sometimes both.
This applies to services as well. For example, a promise not to share information in an email signup form is a way to appeal to people’s need for privacy and security.
10. They are something that people want
Alexander, Who Used to Be Rich Last Sunday is an old children’s book in which a young boy loses all his money that he has been given by a relative. He visits a garage sale and says:
“I saw a half-melted candle. That candle was what I needed. I saw a bear with only one eye. That bear was my friend. I looked at a deck that had everything except seven clubs and two diamonds. I didn’t have to use that seven or that pair.”
He didn’t need any of these things. He wanted them so much that he spent most of his money on them.
People will only buy products if they like them. Don’t be afraid to sell products that fit this category. You don’t have to fulfill a specific need or serve a noble purpose.
Sometimes you just need an ice cream bar.
So don’t be so quick to discount.
You won’t have to lower your price if people love your product.
You market to your audience based on your knowledge of your audience and what motivates them to purchase your products. Price is just a formality.
How to use buyer motivations in marketing
Buyer motivations must be considered when writing headlines, subheadings and offers. Make sure you are able to tap into the motivations behind people buying so that they can make informed decisions about what they will buy.
It will always be a factor. It shouldn’t be their first thought. You’re branding yourself as a company that offers nothing other than low prices if all your headlines shout about a 20% discount and “we’ll beat any price of any competitor”.
The value of what you sell is priceless. You have worked hard to create a store and a brand experience. Don’t get distracted by price competition. You should be focusing on the benefits that you provide and the motivations for your customers. This strategy will require some planning, but it will pay off as you maintain strong margins and grow something you are proud of.