This past Saturday I paid $20 for a pedicab ride in mid-town Manhattan to go just 6 blocks.
I could have taken a yellow cab for $6 or just walked the distance for free. So why would I pay so much to go such a short distance?The answer is the same reason you can get your prospects to pay more, and overcome objections to price.
We’d just left the theatre after a show in Times Square and while it was after 11pm we only had 6 cross-town blocks to walk to the train station, something I normally wouldn’t have had second thoughts about.
But normally my knee isn’t still swollen from the ACL surgery I had a little more than a month ago. And after the train ride in, dinner out and an evening of being wedged into a theatre seat, my knee was starting to complain.
Each step was an exercise in stubbornness and my wife and our friends kept asking me if I wanted to take a cab. But my mind was made up to hoof it, though with each step the swelling in my knee felt worse.
For whatever reasons, most likely my own pride, I couldn’t see getting in a yellow cab just to go a few blocks to Grand Central Train Station, but then when a pedicab came by, I was more than ready to take a seat. And yes it cost $20 to go just a few blocks…and our friends who walked made it in the same time. But in my case, it was exactly what I wanted and I was more than happy to pay the price.
Now I may be more stubborn than some, but everyone, no matter how “logical” they think they are, makes decisions the same way, based on their emotions.
In this case the lowest cost alternative was to walk the distance – for free – but given my recent surgery, this wasn’t the smart or pain free choice.
Given my condition, taking a cab, would have only cost 6 bucks, but I’ve never taken a yellow cab in the city for anything less than 25-40 blocks before (at least mile or two).
But my current condition and my emotions dictated the decision, putting my wife and I in the pedicab – which is exactly how your prospects make their decisions too.
The truth is:
1. People always make decisions based on emotion, and then use logic to justify them.
2. Price is never the issue – value is based on the context of the decision.
3. Value is in the eye of the beholder, but your marketing is what creates the context and the perception of value (or not).
How does this apply to you and to your small business sales?
Have you ever had a prospect tell you they couldn’t afford your small business’ products or services or they were too expensive? That price was the problem?
If you have, then a few simple changes to your marketing can make all the difference in the world to your small business sales, tapping the emotional reasons people buy, clarifying the value from your prospects’ perspective – and helping you sell a lot more of your products and services.
To your success,
P.S. Have a question about pricing? Strategies and tactics for overcoming objections?
Leave a comment and let me know.