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The psychology of buying

Sometimes price should be the last thing a manufacturer focuses on

By Kevin Murphy -- Industrial Distribution, 11/1/2004

As a distributor, keeping focused on filling the order is Job 1: Answer the phone, determine the need, agree on price and fill the order. That's what keeps distributors in business, right?

But sometimes it seems everything hinges on price. And while price is critical, it's the last step in a long decision path. Before your phone rings the customer has had a series of experiences. Bring those experiences to the table during a sales call and you'll spend less time on price and more on what's really driving their decision to buy.

Some of these drivers are emotional—fear, for example. In the case of safety products, fear trumps price every time. If someone gets hurt, could you sleep at night? Will you lose your job? Tactfully remind the buyer that the right choice won't come back on them.

What about vanity? Nobody will admit it, but products sell because they say something about the person using it. Is the manufacturer a supplier to Military Special Ops or Navy SEALS? That qualification probably rationalizes a higher price. In fact, paying a premium price can even add value to the end user's experience.

These intangibles become more emotional the deeper you go: Warranty, reputation, pride of ownership, the "geek" factor ("I'm smarter"), style, machismo and even sex appeal. Unfortunately, nobody wants to peel their emotional onion in front of an industrial distributor. The trick is to deflect price objections by reminding them what's driving their decision. And you can use this against competitive pressure as well.

We've all heard the standard price objection a million times: "What? I can get the same thing (down the street / on the internet / from a catalog) for half the price!"

Maybe so, but play to your strengths before cutting margins. They came to you for a reason. Convenient location? In-stock product? Number of years in business? Liberal return policy? Product expertise? Let them know you take the long view, and you're after their next order, and the one after that, even more than this one.

The psychology of buying is actually more important than selling, because if you understand what your prospect is thinking and feeling, you'll have a much better chance of finding what motivated them to inquire in the first place. In the process, you'll also tune into what their needs are, so they'll leave satisfied that you listened first, and recommended a product second.

Intangibles give you something in common with your customer. If the customer mentions the color, or says something good about a manufacturer, share a moment and agree with them. Then share something good that you've learned about the product or the manufacturer. When the talk is positive, you're more likely to book the order without a lot of price talk.


Author Information
Kevin Murphy is the director of marketing for Pelican Products, Inc. in Torrance, Calif. He can be reached at kmurphy@pelican.com

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