Do customers buy on price?

Your immediate response might well be “yes, of course they do!”

Since 2008, The UK has found itself in the deepest recession of recent years. As such, you’d be forgiven for thinking that your potential new customers are buying purely on price alone. But even though money might be incredibly tight, more often than not, they don’t.

This doesn’t mean that they don’t factor in price – of course they do. Everyone does, but it’s value on which people will base their decisions. The benefits of dealing with you, your company and the level of service you provide, plus the quality of product or service you’re offering will create a perception of value in your potential client’s heads.

Of course, many people will want to feel they have got the best deal – but the cheapest is rarely the best, and customers are acutely aware of that.

If they believe they’re getting good value at an affordable price, they’ll buy.

Good value vs. too good to be true

Imagine you’re taking the other half away for a short break and you call up a few B&Bs to find prices.

The first place you call has several free rooms available and is willing to offer you bed, breakfast and an evening meal for just £10 per head. The second offers you the same thing, but they’re asking £40 per head, the third offers the same thing at £35 per head.

What is your immediate perception? Are you going to stay at the £10 B&B, the £40 or the £35 one?

Does the cheaper option look more attractive or worryingly suspicious?

There might be a very good reason that the first B&B is just £10, but based on immediate perception and price alone, it’s likely that you’ll be thinking that there must be something wrong!

Adding value

You wouldn’t buy a pair of shoes that were 2 sizes too small just because they were cheap, would you?

You would buy them because they fitted well, because of what they were made of, because they were stylish, because they were ideal for the job, or whatever other reason you may have before handing over your hard earned cash. You’d also want to know that what you were buying was worth the money being asked. The same applies to everything you buy.

The more someone knows about you and your product or service, the more they’re likely to buy from you and it’s the benefits of dealing with you which add that all important value. However, if you asked your customers what the benefits of your product or service are, would they know? If they don’t, then they won’t be able to add value to your proposition.

Have a quick look at this link and see if you can work out the features of your business and turn them into benefits for your customers to help them to buy from you.

Don’t be tempted to take the easy route

It’s important to make the most of every enquiry, and it’s unlikely you’ll be able to achieve this by talking on the telephone. Instead, if it’s at all possible – and no matter what your company sells – you should arrange to visit your customer in their home.

Of course, in visiting your customer you’ll be able to provide a more accurate price when you know what the job entails, but you’ll also give yourself the opportunity to build vital rapport with your customer and talk them through the benefits of dealing with you.

If the customer likes and, more importantly, trusts you, the more likely you are to win the business and less emphasis you’ll need to put on offering the cheapest quote.

Testimonials make all the difference

Whether they tell you or not, people these days will almost always want to speak to some of your existing customers, or at the very least, read what your customers have to say about you. This may be in the form of online testimonials or by them talking to your customers over the phone.

Whatever they choose, make sure you have a bank of happy customers available who are willing to act as a testimonial for you and your business. This adds massive peace of mind, which in turn adds value, which then makes your price more attractive.

The more reasons you give to buy, the more likely your prospect will become a customer and the less they will focus on price.

Try it. I think you’ll be surprised.