By Jeff Shore
I hope you are as inspired by Valerie Downing as I am. Valerie is a sales professional in Edmonton, Alberta who takes her own development very seriously.
How much so? I offer below the unedited takeaways from just one of my podcast’s. Valerie listened to The Buyer’s Mind as I interviewed Kit Yarrow, Phd on the psychology of pricing. She emailed her boss the following notes. Enjoy!
– Purchasing is an emotional decision, very little of it is logical.
– We purchase to elevate our present emotional state.
– We do not want to be taken advantage of and want mental shortcuts if possible.
– We want ease, no hassle in making the purchase. (Ease is right)
– Across the world, the same principle applies. The price should be “fair”. Lowering prices creates mistrust and devalues the product.
– Kit’s study proved people “enjoy” the product more if it isn’t a bargain.
– People don’t really understand what is a good price for any product.
– They need symbolic cues to validate their purchase decision.
– More than anything, they need trust. Trust in the product and the sales person.
– Jeff added here that like-ability (of the salesperson) is still one of the most key influencers.
– Price is an enabler but is not an influencer in the way we might expect it to be.
– People are trying to satisfy a psychological need with our purchase experience? (Because, over the last many years, there has been a huge erosion of trust in the world)
– People need proof or validation to help them purchase. She says people want us to protect them from themselves. (Do not go down Bargain Road- It will do the opposite.)
Point to remember:
– Avoid giving exact prices until they have had time to look at the product and talk about how it works for them. Gently postpone that conversation. Give a range and start talking about what they need.
As a sales professional it is easy to fall into the discount mentality hoping that a better price will win the sale. But price doesn’t determine the sale, there are many other factors that do.