Recently a friend of mine took her 79 year old parents to buy their first smart phone.
Having purchased their last cell phone more than a few years ago, they were shocked by the price.
Expecting to pay under $100, they quickly found that instead these phones were closer to $200 and up.
Their first reaction was to ask for the cheapest phone they offered.
Sensing their shock, the sales woman showed them the lowest priced phone and said, “Phones are much different today. What you are really purchasing is a computer, phone and camera all rolled into one.”
Instantly, the tides changed and my friend’s parents no longer thought of the phones as expensive.
This sales person did a whole lot of other things right too. Here are just a few of the lessons you could learn from observing her…
Package what you sell. (Tweet this!) Reminding her customers that the phones were not just cell phones but a computer, phone and camera all rolled into one, immediately increased the perceived value of the phone…so much so that my friend’s parents actually bought more expensive phones, not the cheapest ones available. And they left feeling like they got a great deal. This is because the salesperson showed how the phone had packaged three expensive types of technology into one device.
How can you package your products and services and show the increased value of what you offer?
For example, if you hold an event and cover multiple subjects and bring in a variety of speakers, you are offering a package deal. You can showcase the increased value by reminding your customers/clients that to get the same or similar secrets, strategies and methods, they would have to purchase multiple programs in order to receive all the subjects you’ll cover and/or travel multiple times during the year to different locations to see all of the guest speakers you’ll have… were it not for you gathering them all together in one place for you. The package has a higher perceived value because it would cost them a great deal more in time, money and effort to obtain the same benefits individually.
Make it easy for them to purchase. The payment options offered for the phone included the option of paying a small percentage down with a payment plan of just $10 a month and no interest. By offering payment plans, you can make it feel affordable for buyers therefore easier to say yes. Plus by doing this, the sales person was able to get them to take multiple upgrades, such as their insurance plan at $10 a month and extra products such as car chargers and phone cases. Paypal will even do the financing for you with their “Bill Me Later” option and you’ll be paid the full amount up front!
Create urgency. The sales person explained a limited time offer that expired at the end of the day. Offering a discount or offering a limited edition item that will disappear and that you can only get during a set time period are two ways to do this. If you offer something people truly want, the second one can actually be more effective.
Make whatever they buy FREE. For years, mobile phone companies have made phones appear free by offering phones “free” when you sign a contract for service. There are many ways to make your product or service appear free. For example, if the value of the bonus gifts you offer add up to an amount equal to or greater than the price of what they are actually buying, psychologically it makes your prospect feel like they are getting it free.
ALWAYS offer upsells. My friend said this sales person offered multiple upsells…from phone cases and chargers to an upgraded data plan and extra insurance to a plan that allowed them to trade their phone for a newer model anytime they wanted. Twenty percent of people will take your upsells, so if you aren’t offering them, you are automatically leaving money on the table. This is covered at length in the GKIC course “Secrets to Tripling Your Customer Value”
Don’t abandon them after the sale. After my friend’s parents purchased their phones, the sales woman spent time showing them how to use their phone. Sensing they were still unsure of some of the features, she told them when she was working over the next few days, gave them her phone number and invited them to come back in or call her personally if they needed help.
Use stick letters, emails and follow-up communication to continue engaging with buyers after you’ve made the sale. This reminds them why they bought from you, tells them how to consume your product, and reinforces that they made a good decision.
One of the most effective way’s of keeping in touch is through great use of a print newsletter. For each month you’re not communicating with your customer list you’re losing 10%-20% of it’s value. That means 10%-20% are leaving and going to the competition, are finding other alternatives to your product or service, or simply are forgetting about you. One of the least expensive ways to actually increase the value of your list is to have a monthly newsletter sent to them. To get full details on why you need a newsletter…click here.
This buying experience actually became a mini sales lesson. Pay attention to how people sell to you. When you do, you can learn a lot about how to sell better in your own business. In the meantime, print this mini sales lesson out and use what you’ve learned to help you increase your own sales.
P.S. – Get “The 10 Rules to Transforming Your Small Business into an Infinitely More Powerful Direct Response Marketing Business” for FREE. Click here to claim your customer-getting, sales-boosting tactics.