Jan
05

Is Price Really the Biggest Factor?

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customized marketing solutions make price unimporant

Decidedly, NO. Price is NOT the biggest factor in buying decisions, despite what many entrepreneurs and small business owners believe. I know many entrepreneurs who have been lowering their prices in order to grab business and make sales. They think it is the only solution to ‘people not buying’. In fact, it is not the main issue, the majority of people do not make their buying decisions primarily based on price, and unless you are an ‘under $10 item’ you aren’t going to get past their resistance simply by being low priced. In fact, even an under $1 item won’t do it.

A recent survey by the IBM Institute for Business Value found that, even in the current economy, a full 72% of shoppers at grocery stores say that the quality of the products is more important to them than the price. And, a full 68% say that the most important consideration for them is nutrition. It is, of course, possible that people being polled are reporting what they ‘believe’ to be the correct answers, but consumer behavior, as tracked by the grocery industry, seems to support the same thing. Over 50% of grocery shoppers, with coupons in hand, chose to waste the coupons and buy other, more valued brands for a higher price. The biggest reason they gave for selecting the higher priced item was that it was better for their family.

If that is true in the grocery store, don’t you think it would be true for your clients and prospects? If they perceived the right level of value when coming in contact with your product or service, price wouldn’t be the biggest factor in their decision. We make decisions based on emotion, then we use logic to support them. What have you spent money on recently where price wasn’t the biggest factor? Why did you do it? Really look at your own personal emotional motivations and think about those of your clients and prospects. You will find that you are able to come up with customized marketing solutions that maintain your pricing, even when things are more ‘challenging’, if you put the emphasis on the value and benefits your clients and customers will receive.


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