2. The Principle of VALUE
Another reason why we buy things is because of value. I once heard a friend of mine tell a story about her immigrant grandmother. Her grandmother came home with two pairs of jeans that didn't fit anyone in the entire family. My friend asked her, "Grandma, why did you buy these jeans when no one can use them?"
Her response? "They were such a bargain - I saved more than $40!"
The point is this: we all love a good deal. We buy things because they are valuable to us.
Now, there are two basic ways that we judge value...
Two for the price of one.
Buy one get one free.
Free medium drink with any hamburger order.
Extra value meal.
Free installation with any satellite purchase.
Thirty days free to new members.
These are all ways of providing MORE quantity for the same price. And that, in our estimation, is a determining factor in how valuable something is.
After all - what's more valuable: A large pizza for $14.95 or a large pizza with a free 2-liter coke for $14.95?
Obviously the free 2-liter coke adds more value to the order.
That is a quantity increase.
And it prompts you and I to order, simply because there is more "bang for the buck."
In direct marketing, it was a collection of THOUSANDS of "money making reports." Online, it's a collection of dozens of "ebooks." Unfortunately, neither of these usually has a lot of useful information in them -- but there sure is a lot of them! And many people buy because of the sheer volume they represent. It just sounds like an awful lot for the price tag that is attached.
The other measuring stick of value is quality. Let's stick with pizza as our illustration. I like Godfather's Pizza. Far and away my favorite. I rarely taste anything that good.
Any store could sell pizza at 1/10 of the price of Godfathers and it is not interesting because the quality of Godfather's is supreme.
I am happy to pay a premium because of quality. I would rather pay more to receive something of higher quality.
We make purchases because we see some kind of value - whether quantity or quality. Give us either and you've most likely got a customer. Give us both and it's a done deal.
Part 4 coming soon!