When Tyler launched his electronics business, he was full of excitement. He’d invested significant capital in the launch and it paid off. The first few months were busy and he saw much of his inventory clear off the shelves. He was excited about this early success and was looking forward to sales continuing on the upward trend!
Then reality hit.
After the initial influx of business, sales began to slow. The summer months were a challenge as few people seemed to need his products. There were many days when he barely covered salaries, let alone the other expenses of being in retail.
Tyler knew he needed to increase sales and so he began to read every book he could find on how to improve sales. He did web searches on topics like, “How do I sell?” and “How to make more money.” Nothing seemed to help.
The mistake Tyler made is a common one among business owners; He asked the wrong question. The question he should have been asking was,
“Why do my customers buy my product?“
That’s the magic question that can improve sales dramatically! And answering that question will help you improve sales for your products or services faster than anything else.
Drilling down further
Every year in the U.S. over a million 1/4 inch drill bits are sold? Why? I’ve asked that question many times and here are some of the answers that business owners give:
- They need a 1/4 inch drill bit.
- They broke the one they had.
- You can never have too many extra drill bits.
- Some people like to have different types of 1/4 inch bits.
While each of these answers may be valid, they miss the point of why people buy 1/4 inch drill bits: People buy 1/4 inch drill bits because they need a 1/4 inch hole!
Pain or Pleasure
People purchase products and services for one of two reasons: to increase pleasure or decrease pain. That’s it. There really are no other reasons. Think of any product or service and ask yourself, “What pain or pleasure does this impact?” You’ll be amazed at how easy it is to answer that question. Figure out what pain or pleasure your products/services address for your customers and you will see sales increase in no time.
Boost Your Sales!
How do you figure out why your customers buy from you? Let me suggest a few ways to do that.
- Ask Them. Pick your top 10 customers and invite them for coffee. Ask them why they buy from you. Ask them what needs your products/services meet for them. You might be surprised at the answers.
- Change Your Perspective. Try looking at your products/services from the viewpoint of consumers. Too often business owners fall into the trap of looking at sales from their point of view. It’s easy to forget that our customers are not emotionally invested in our business the way we are as owners.
- Turn Features Into Benefits. Write down all the reasons people should buy from you instead of your competition. Take each reason separately and ask the question, “Why does that matter?” Write down the answer, then ask the same question again: “Why does that matter?” Try asking that question at least three times for each reason to buy. That process will help you gain insight into why your customers buy from you.
Every business struggles with sales from time to time. By understanding why people buy your products/services, you can minimize those struggles and see your sales increase significantly.
When we ask the right questions and focus on the right things, we can get results quickly. Is it time to get honest with yourself and your business? You can take your first critical step to understanding exactly what needs to happen in your business next by taking our 10-Minute Opportunity Assessment. Get started right away by CLICKING HERE!