Why Customers Spend Money on Your Services and Products
small business success tips





When customers buy your products and services, they do this in order to either feel better about themselves or solve a problem. Sometimes it is for both reasons that you choose to buy from you. They just do not buy products and services. They buy what those products and services offer them. If you sell a product that solves a problem, such as a $30 bottle of weed killer, attach a dollar figure to what the problem could cost if left untreated. For example, if weeds take over a lawn, it can cost you $2,000 to replace the lawn plus the embarrassment and aggravation that goes along with it. Now, doesn’t it make better sense to buy this $30 bottle of weed killer.

By putting a dollar value on the solution, the initial purchase looks that more attractive to the potential customer. By doing this, you are actually selling money and not the product itself. Another example of this in a service based industry is magazine advertising. A magazine may be selling $500/month magazine ads, but if they have an idea of the number of leads that each ad generates their advertisers each month, then the potential advertiser/business take the number of leads that they would get and multiply that by their conversion rates for new leads and thus, be able to determine, if purchasing the ad makes sense for them. Again, it is assumed that the potential customer knows the lifetime value of their customer. So, when it comes right down to it. The potential advertiser is purchasing the ability to earn more money. To put it simply, they are buying money.