Tenby International

Why People Buy

As a salesperson understanding why people buy is the most fundamental skill you can have. When we first start to think of why people buy there seem to be endless possibilities however when you examine the reasons which come to mind they can be put into two main categories and they are Needs and Wants.

Typically, many purchases are initiated by a need, for instance we buy food and clothing to satisfy our basic human needs for survival. However when we come to selecting the type of product or even the brand the decision are based on other factors, usually we want to satisfy an emotion.

So we can summaries here by saying we buy based on emotion, i.e. wants and justify the purchase logically based on needs.

Drilling down to uncover the needs of a prospect is vitally important for example if you are a sales person selling whitegoods and you have a prospect walking through your store looking at the fridges you have on the floor, it would be an advantage to you to know why they need a fridge, if their current refrigerator has just broken down you would know in most cases they would need to replace their refrigerator that day. This knowledge could minimize objections such as price or availability.

Similarly if you are selling to a business have an understanding of their needs creates a picture of how that company operates and what requirements your product or service will need to have. We refer to these requirements as functions and features, the prospect will use these functions and particularly the features of your product or service to justify the purchase logically.

Once a prospect has been convinced that the product or service you are pitching fulfils all the needs there also has to be an emotional fulfilment, some emotional value returned to the purchaser, we call this the Benefits of the product or service, i.e. what’s in it for ME.

To move a prospect to a purchaser in the buying process we have to understand their buying motives, in summary there are three basic buying motives called the “Three P’s”.

1. Peace of Mind
2. Prestige
3. Profit

Peace of Mind- The reason most buyers search for peace of mind is based is the influence of fear and there are two basic fears a prospect has when they are making the decision to buy and they are; 

1. Fear of Change
2. Fear of making the wrong decision

These two fears come in all shape and sizes; different paper work, will have to speak to different people and they may have to explain the changes to their work colleagues. When purchasing electronic equipment we fear the new item might not be compatible with our current equipment hence we could make the wrong decision.

In a business situation a wrong decision could be a career defining moment, so our future could be on the line if we get wrong. A big motivation to not do anything. So as a sales person you need to remove any fear a prospect may have and deliver peace of mind by selling the function, features and benefits of your product or service.

 Prestige- When we think prestige we are talking about good image, professionalism, impressing our clients with the right address or a great view over the bay or a great reception area. On a individual level expensive watch, new suit which has a great cut and is made of fine material, new hair cut……In my case a good polish. All the things that create a good first impression and separate you from the rest of the pack.

 Profit- The purpose of any company is to remain in business, and one of the ingredients to achieve this is for the company to make a profit. Simply, put making a profit is generating more revenue than our costs of doing business over a given period of time.

 Additionally a prospect will be considering things such as value for money, increased markets through faster production or delivery. More sales, faster turnover of product.

 While price can have a direct impact to profit it might not necessary be the motivation for a change, for example a cheaper supplier may be failing to supply hence empty shelves i.e. missed sales. This opens up an opportunity for a supplier who can deliver on time and in full but at a higher price, this leads to more sales and ideally more profit for the prospect.

 In conclusion, all customers buying motives fall into the same basic categories, but it is important to understand and remember that each prospect is different and should be treated and sold to with this in mind.         

By Steven Hudson

0411 051 633

Steven.hudson@Tenbyintl.com.au