Subscribe to the our newsletter to receive latest news straight to your inbox.
Today I’m going to teach you five reasons why people buy. Now, these are not emotional reasons. I’m not going to talk about that.
Today I’m going to teach you five reasons why people buy. Now, these are not emotional reasons. I’m not going to talk about that. Today I’m going to teach you the points of differentiation in terms of your offer, in terms of your focus, what do you need to focus on? 5 Reasons Why People Buy Your Product Or Service.
So, let’s get right into it.
Why people buy is because of the price.
Comment below if this is how you buy and how you make your buying decisions, based on price.
So what most clients think?
Who gives me a better deal?
Who offers the cheapest price?
That’s whom your client buys from.
So, maybe when it comes to your products or services, you do offer the lowest price in the marketplace or you offer a lower price compared to your competitors. Yes, that’s one reason why people will buy your product or services.
The challenge, when it comes to offering the cheapest price, is when you compete by the price you die by price. It is not a sustainable advantage because anybody at any given time could come in and compete with you and offer a lower price.
So, whatever advantages you have right now in terms of getting customers and getting market share, someone comes in and just says, “Hey, you know what? We’re going to offer 20% cheaper than what you’re offering right now.”
You instantly lose that competitive advantage. But that is one option. So, think of areas where you buy a product or services based on price.
Why people buy is because of selection.
We purchase from places and companies where they offer a wide range of selections.
One of the best examples I could give you is Amazon. When you want to buy something you would go to Amazon because they offer a wide range of selections.
Or maybe there’s a local store that you go to that they offer a wide range of selections. You like to go there because you don’t need to go here and there.
You can just go to one place and buy almost everything that you want. So, Amazon is a great example. remember, when you need to buy something, sometime you don’t want to make a trip or don’t want to send someone to get all that stuff. You just go to Amazon, buy everything you need, and ship directly to your house and pretty much has everything that you want.
You can look at the reviews and can compare prices.
Let me give you another example.
One of the reasons why Netflix is very successful is because now you can go to Netflix and you can just watch. You get a lot of selections.
What type of movies that you want?
Do you like action movies or drama or TV series?
They got a ton of those.
So, that’s the second reason why people buy.
Why people buy is because of quality.
We want good quality products and services, don’t you?
Think about in your own life whom do you buy from?
Don’t you want superior quality in terms of products or services that maybe you have to pay a little bit more, but you’re like, you know what, it is worth it, right? The experience is worth it.
You’re willing to spend a little bit more money, but what’s very interesting is this. As a buyer, as a consumer, we could be a price buyer in one category and we could be a qualified buyer from a different category. Just because you buy product or services based on price for certain products and services, it doesn’t mean you’re always a price buyer across the board.
It’s very, very critical. So, think about in your own life, where do you buy for quality that you don’t mind spending a little bit more money?
One thing I’ve learned like for example, If you will buy cheap shoes and though it doesn’t make a difference, But when you buy cheap shoes they wouldn’t last as long and they would not be as comfortable. The quality is not as good. Now if you spend more money on a pair of shoes, which is more expensive, but they are more comfortable, they’re more durable and also, they look better and they feel better and they last longer.
So, there are certain products and services that I choose to buy in my life based on quality.
People are always willing to pay for quality. There’s always a segment in the marketplace that is willing to pay more, in fact, a lot more for premium products or services.
They don’t mind it as long as the quality, it is good.
Why people buy is because of convenience.
Nowadays, consumers, we want something and we want something now. We don’t want to wait.
So, convenience is a huge selling factor.
Imagine this, you are traveling, you landed at the airport, you go to the hotel, and then, you want to eat, you’re hungry. But all the restaurants are already closed. You’re in your hotel room, you’re like, “oh my god, I need something to eat” and you look at the minibar knowing that chips cost like three or four times more than what I could get in some store.
But you know what?
You’re hungry and you want some food. You’re willing to pay more money for the same product and it is just because of convenience. People are willing to pay more for convenience.
Something that will save time, that will save them a lot of effort.
Convenience is a huge selling factor.
So, why are you willing to pay three or four times higher for the same product that you get somewhere else?
You could easily go get in a car, get in a Uber, and go get it, but you’re like, I don’t want to move, it’s late at night and I’m tired, I’m exhausted, I just want something. A quick bite, I just want something to eat.
And that’s perfectly fine. You’re buying convenience. People are ready to pay quite a bit for convenience.
So, comment below. Where else in your life that you purchase because of convenience?
Amazon besides selection, they also offer convenience. Simply, you don’t need to go somewhere, you don’t need to get in your car. You just go to your phone, computer or iPad and just order from there.
So, that’s another selling advantage that they have.
Why people buy is because of personalized service.
I very much believe now the competing advantage a lot of companies should offer is personalized service. We are now in the era of personalization.
We do not just need products for everybody, we want products for us.
Even think of Coca-Cola, a brand. You’ve seen those bottles where they have your personalized name on it, right? It’s a form of personalization. That’s my bottle of Coca-Cola, although, you know, it’s the same thing, it’s just Coca-Cola. But that’s a form.
Even for something like this people want personalization.
Think about Amazon, you go there websites and it is a personalized shopping experience. Your Amazon home page is much different from mine. Depends on what products you bought in the past, what’s your browsing history?
So, think about that, personalized service.
So, out of those five reasons why people buy, which one should you focus on?
Which one is your point of differentiation?
I suggest you focus on one of them instead of trying to compete on price as well as on quality, selection, convenience, or personalized service because when you focus on quality, chances are you need to charge more to deliver that kind of quality.
You need to charge a higher price if you want to offer that personalized service.
Focus on one of these.
So, you now understand the five reasons why people buy.
Be sure to checkout Why Your ECommerce Products Will NEVER Sell