> How does "size of sale" influence buying behavior?
How does "size of sale" influence buying behavior?
In your opinion how does "size of sale" influence buying behavior and do you believe that major sales require different selling skills than smaller sales? - by Community Mailbox
I think that the size of the sale has to relate to the size of the buyer as to whether it is a big sale or not.
If you have one who is used to spending money, then I think that buyer's behavior would be vastly different than one who agonizes over pennies.
The penny pincher is going to have to be "sold" on the purchase where the less concerned with price might look at a purchase basically as something which fills a need or desire. Having been one who has been in the company of the very wealthy for 35 years of my life, I've been amused by what and how people buy things.
Aloha... :cool: - by rattus58
I believe the "size of sale" matters...but from the customer's perspective.
For instance, a customer buying toothpaste is going to go about it differently than a customer buying a second home. On the other hand, if a person buys homes everyday, that will become more of a routine purchase that is similar to buying toothpaste.
Skip - by Skip Anderson
It depends on what you are selling. I think people are really crazy when you think about this subject. Everyone has seen someone spend $2 more on gasoline to drive a long distance to a store because something was on sale for $1 off.
I used to sell copper water piping systems for homes for $560 and people chiseled me for a $50 discount. I often lost these jobs because I only made a net profit of $100 and could not afford to give a discount. Then, while working on these same jobs, I would tell the customer they needed new drain pipes for $3200, and they bought the job without asking one question. I would make about $2200 on the drain job. What happened to the customer's frugal thinking?
I find that higher-priced jobs have a higher priority in the customer's mind. For example; if I tell you that you need a plumbing job for $300, you will not think this is of any importance and your ears are closed, but if I tell you that you need a plumbing job for $10,000, the job now has more urgency for thought and a decision. (Maybe not the best choice of words.)
I always go for the gold medal. I strongly believe that larger numbers get the customer's attention. I know, for a fact, that we close more sales when we quote the higher prices. Of course, it depends on what you are selling.
I also believe that there is a certain amount of customer ego that is related to price (if that is the correct word). I see a lot of customers stick their chest out and brag to their neighbors about the jobs we sell. Instead of saying they are getting new water pipes, the customer will tell their neighbor they just signed a contract for $6,000, or whatever price.
Incidentally, I see my signature is finally working. I like to write everything down I can think of regarding how I run my business. I have been doing this because I would like to retire within the next year and I will give this to the person who takes over my company. Then, I edited the information and made a manual to distribute to contractors to help them. At least, I think I am helping. The following link contains information on how I run my business, several advertising campaigns, sales philosophy, and a lot of free software that I developed. Please be kind when you tear it up. I would appreciate any comments, etc. This manual will never be for sale and everyone can do anything you like with this and the information. - by pcplumber
Size of the sale influencing the client.I recently sold a 4500 dollars job at a clients home.While we were sitting down discussing the sale the client informed me a drugstore that overcharged them 2 dollars and how she called and ran down to the store to collect the 2 doillar overcharge.Her total bill was less then ten dollars.
On the flip side I have sold 12,000 dollar jobs and have the client calling to complain as some idiot in the same profession decided to give them a dirt cheap price over the phone for half the dollars.
The amount and how intense the client listens makes no difference. It depends on how important each problem is to the client.I must build the urgency to take care of these problems.I must drive the want can use can afford and need convincing the client to move forward no matter what the price.
The complainers will complain no matter what the price is. - by rich34232
I would say size of sale isn't always about the price or complexity but is always about perceived risk. Have you ever seen a child in a candy store agonize over which piece of candy to buy yet watch a wealthy individual walk into an automobile dealership and buy the most expensive vehicle on the showroom without batting an eye?
Perceived risk influences buying behavior. There are no two ways about it. - by Houston
In the printing world price matters quite a bit. There are so many ways to get a job done that whoever has the best price usually gets the job. And competition doesn't help either.
Printers who can turn a job faster than the rest can usually land a job at a higher price.
At my place we try to focus on quality and craftsmanship but it is tempting to cut prices to land jobs......something I've had to do more than once. - by Thufir
Perceived risk influences buying behavior.
RISK can be a significant deterrent to a decision, no doubt about it. And I do not want to use the words "but" or "however" after such a statement - meaning this comment by Houston stands on its own.
Really, the personalty of the buyer is most often the dominate factor in a sales regardless of size. Houston made this point using the example of the child agonizing over getting candy they will like.
Small decision, huge to the child. But would it be to every child? I think not.
That one child is an excellent way to prove that people's characteristics, there very core - what makes them tick - this is what influences buying behaviour.
Middle managers are very often afraid to make a mistake. But not all of them - after all, one must become a CEO one day (a person who can truly make decisions, regardless of implications).
Next Friday I travel with the CEO of an industrial process improvement firm ... they bill for labor at $10,000 a man-week, usually two but often four engineers on a prokject at once. In otehr words, this is a decision that costs $20,000 to $40,000 weekly for 12 to 20 weeks. A total cost of $400,000 on average.
Big decision, no?
And yet, he can tell you, he does small jobs too and the decision is sometimes harder to get from the business owner at that level than from an EVP/SVP of Operations/Manufacturing.
Smaller business grow, sometimes in to monsters. So it is not valiud to say "Well, they are small and have to watch their money" Or; "The have poverty consciouness on a business level."
The person at the helm of a business can either make that decision easily or they can't. And if they can they are likely to be more successful, though this is obviuousely not always true.
Some people buy cars easier than others. The ones who agonize over the decision probably had a hard time buying candy too.
I find the big decisions you end up with prima donnas ... they are capable of making decisions but too full of themselves. So, what I am saying is personality has more to do with buying habits than the cost of the purchase.
I once got ofered a house and said how much, the answer was "$235,000" to which I said; "Done". And I am not kidding ... let me tell you the price was fair, it was not discounted.
My insight into my own personality and how I think as an entrepreneur who was able to exorcise his "poverty consciousness" may help you see what it is about people that makes some of them more apt to make a decision than others. And, as a sales rep - you need to sense this about them quickly. Because how you treat them will have bearign on your conversion/closing percentages.
Good luck. - by Gold Calling
size of sales matters and has been proven in the book spin selling by neil rackham (I don't think thats his last name). - by richardgale
size of sales matters and has been proven in the book spin selling by neil rackham (I don't think thats his last name).
What proof did the book offer? - by Gary A Boye
smaller sales to close require more benefits listed and will be a quicker close, where bigger sales will need rapport build and a problem that needs to be solved to close.
something a long those lines, im gonna have to read his book again. - by richardgale
How to apply sales pressure effectively.
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