How to make money by increasing sales? Some people say that as long as your product is cheap enough, then the customer will buy your product. This is not necessary true. Look at the below stories how to make money by increasing sales.
1st money making story, there is a shop which is selling football. The shop sells 2 types of football, namely football E and football C. Football E is much more expensive than football C. Of course, football E can make more money than football C. Therefore, the shop owner kept a lot of stock for football E. Everyday, the shop owner keep on promoting football E. Unfortunately, sales for football E is lower than sales for football C. After investigation, the shop owner found out that the price and quality is the important factors when consider between football E and football C. Since the price for football C is much lower than football E, therefore the buyers willing to try football C.
To increase the sales of football E, the shop owner came out with an idea by selling luxury football which is football L. The price for football L is higher than football E. Anyway, the shop owner only kept a minimum stock for football L. Now, customers have 3 choices, which is football C, E and L.
When customers come into the shop, they will compare the prices for football C, E and L. Of course, customers want the cheapest football. At the same time, they also want good quality football. In their mind they think that football C is cheap but the quality must be not good. For football L, they think that the quality must be very good but very expensive. Therefore, at the end, the customers will buy football E because it is cheaper than football L and better quality than football C. Customers always want something which is cheap and at the same time, they want a good product.
2nd money making story, if you are a shop owner and there is a potential customer walk into your shop, what would you do? You will welcome him or her. Then, you will use whatever method to sell your products. Of course, you hope that the customer will buy your products immediately. Unfortunately, customers seldom buy the products at the first time they walk into your shop.
A research had been done at which there are 2 groups of shops. For first group, the shop owners will hard sell the products and urge customers to buy the products immediately. For second group, the shop owners will promote the product. At the end, if customers still hesitating, the shop owners will say this sentence: "You can go to other shop to see the similar product first and come back again." At the end of the day, the second group will make more money and sales.
Sometimes, when we want to buy a thing, we like to compare among several shops. Our customers are also like that. So, if customers are hesitating, do not force them to buy your products. Tell them to compare the product first before purchase can build up trust from your customers because you are honest and you know what they think.
As you can see from the above money making stories, increase sales is not about the price. It is about playing around the customer psychology.
