5 ways to convince people to spend money

I recently got thinking about some of the ways we’re persuaded to spend money. Sometimes it’s things we planned to buy anyway but other times it’s things we actually had no intention of getting or stuff we just don’t need.

Tell them it’s limited edition

If something won’t be around for long they’re more likely to buy it because they don’t want to miss out. In many cases we’d actually rather take the risk and buy it, than not buy it and potentially regret it.

Make then feel like it’s something exclusive

Exclusivity makes people feel special. Similarly to when something is limited edition, when something is or feels exclusive people want it more. It could be as simple as having a special link to a product that you provide to those who sign up to your newsletter. Or it could also be something incredibly expensive that only the wealthy can afford it.

Let them know that it’s worth the cost

When you highlight that something is great value people want to buy it because it seems like it’s worth it. Maybe you highlight where a particular fabric was grown, the treatment of the workers, the minimal environmental impact or how long the product could last. The value that is focused on and highlighted will depend on the type of customer you’re trying to attract.

Let them know that it’s more than worth the cost

This method works well when you’re providing a service but can also apply to certain physical products. There are many things that we purchase that come with secondary value. It could be a cooking class that is worth it because you’re learning a new skill. It becomes more than worth the cost when now you’re more confident to host your friends and family because you now you know your way around the kitchen. It could also be a digital course where what you teach will allow small business owners to attract more repeat customers which will improve their profits.

Make them think it will improve their life

If you play into ideas of what people think is good for them then they’re more likely to buy from you. This is very rampant in the wellness industry but also in fashion. Many people buy items like bags because of signals they want to send and the way they want to be perceived. Going back to wellness, if you can sell someone something that is supposed to be good for them in some way, they’ll feel good even before they’ve used or consumed it. People are often aware if this which is what drives them to buy the thing in the first place.

Rational decision makers

When I first heard the term ‘sunk costs’ I had no idea what it meant. However, I heard it from Seth Godin so I payed attention and came to find that it referred to money that had already been spent (which you can’t get back) that should not be considered in future decision making.

This idea can be applied to more than just money, it can also be applied to time although they say time is money so it all really just boils down to the same thing.

The idea of sunk costs is so useful because often we make decisions based on the past whereas sunk costs advises us to put that aside and make choices based on the present. I think it helps us to become more rational decision makers instead of relying on how things of the past have made us feel.

The consumer doesn’t care

The viewer or the consumer does not have to care about what went on behind the scenes. They are there for the art not the person and I think that in some cases that’s the way it should be.

In other cases, like on social media, the consumer is often there for the person just as much as if not more than they’re there for the art (or whatever creative thing that the person does).

This is why people with highly dedicated fans/followers will be supported no matter what they do.

I think that because of social media there are now blurred lines between what is business and what is personal.

But it is important to know that just because you’re visible online and people may know what you do it doesn’t mean that they care. Some people are there for the work, not for you and that is perfectly alright.

So, if you offer a product or service and the customer is not satisfied they might voice how they feel. If it is not considered good enough the customer doesn’t necessarily care that you did your best and that you will be better next time. They care that they bought someone thing they are not happy with.

And so your job is not to find customers that care about you personally but to instead to show up, create great work and deliver.

Creating a sustainable business

Some of the businesses that have suffered the most are the ones built on bringing people together and having person to person interactions.

On the other hand for the people that have created online businesses they can run from anywhere, it’s pretty much business as usual. They may even be seeing an increase in customers/clients as people look for something to turn to in these uncertain times.

And so now these people that used to run businesses based on people being together are having to re-think their plans.

Asking themselves questions like ‘How can I transform the in person experience to an online experience without a loss of value?’. That could be as a plan to totally move their business to the online world or to be a supplement to their usual income.

An example could be in person one on one coaching, moving to online one on one coaching or group coaching sessions.

A group cooking class moving a to live online cooking class that can also be purchased afterwards.

A baked goods store moving to click and collect or home delivery.

I think the current situation has made a lot of people realise that their are different (and in some cases better) ways of doing things.

 

Price, value and auction

I recently wrote a post called Does the customer determine value?

Here are some more thoughts related to value, price and the customer.

Think about an auction, the seller will often have a reserve price (the minimum amount they’re willing to sell the item for). Yet items often get sold for significantly higher because buyers are prepared to keep bidding if they want the item badly enough.

Even if an item could fetch around 20k, the seller can never start with that price, they have to allow the buyers to build up to it. Instead, the seller can only hope that people will pay that amount or at least above their minimum price.

I think it could be said that, although the seller sets the price it is in fact the customer that determines the value of the item.

Getting more money for less work

If the service you offer doesn’t require you to be there in person then there’s a chance you can get more for doing less.

Take a coaching service for example.

Say you have 8 clients who all have a total of 4 one hour sessions a month costing £55.

That’s 32 hours a month earning £1760

But what if you batch your sessions and make them online with 2 groups of 4 but each session now lasts 1.5 hours and now costs £50

That’s 12 hours a month earning £1600

But now lets see one group of 8 with a weekly 2 hour session at £55.

That’s 8 hours a month earning £1760.

Imagine working a quarter of the time but earning the same amount, if not more.

It’s not about being money hungry but simply having an awareness that the amount you earn isn’t dependent on how much time you spend working.

Unfinished business

What happened to all those plans you made?

Starting is always exciting and finishing is always the aim. But somehow you let stuff get in the way of your plans.

You focused too much on the problems instead of how to make things happens.

You used your free time passively and felt like you needed more hours in the day.

You ran out of steam.

You listened to that person who said it wouldn’t work.

You lost faith in the plan.

You got stick and didn’t push through.

If your plans are often ending up unfinished you might want to figure out why. You might want to slow down and not get carried away with the joy of starting something new.

You might want to learn to stick things out until the end because some things are worth finishing.

 

Do I have to struggle in order to succeed?

I’m starting to wonder whether struggle has to be apart of every ‘success story’.

There’s this thing about the struggle, going as close to the brink as possible but managing to find a way to make it. That story is celebrated it’s the ‘rags to riches’ story and one of the most well known examples is Cinderella.

Her mother died, her father married a woman with 2 daughters who all treated her poorly and then her father died but in the end she married a Prince!

But I sometimes wonder if life really has to be that way. Constantly hearing of peoples struggle on the road to success ingrains that narrative in our minds and makes us think that the struggles we face will lead us to greatness.

Like my life is super crappy now but in 10 years time whilst I’m counting my big bucks I’ll tell people about how I slept on my friends couch, had to sell my car and most of my possessions just to get by but look at me now.

I currently work an office based 9-5 and I’d like to think I can do more beyond that in my lifetime. But I don’t want a Cinderella type struggle and I don’t want my hard times to be the justification for any good stuff that comes my way.

What I’m realising though is that there’s a big difference between working hard and going through hard times.

So no, I don’t think the struggle is necessary in order to succeed but I can’t deny it adds some pizzazz to the how I got to where I am today story.

Accidental networking

When you think of networking what comes to mind?

For me it used to be fancy people in fancy clothing making conversation with the right people.

Everyone would act important even if they didn’t believe it and being the person that everyone wanted to talk to was a signal to the rest of the room that yes you were really a somebody, not just a pretender.

But one morning whilst making my lunch for work, I started thinking about all the people I’ve met over the last 12 months and my growing collection of business cards.

I realised that over the past year or so I’d been networking accidentally. I’ve met people starting businesses,  brand owners, fellow bloggers, photographers, Web designers and other creatives.

When you have an idea in your head of how something should look or how it’s supposed to be, chances are you might miss it when it happens.

Bezos, Amazon and temporary things

I read an article on Jeff Bezos about a month ago and there was part of it that really stuck with me.

He basically said that the fall of Amazon was coming and that all he could do was delay it for as long as possible.

I don’t know what it was about his words specifically but I felt like there was great power in what he had said.

He’s built something iconic (despite the way the company is run for warehouse workers) that will never be forgotten but he knows that the reign of Amazon won’t last forever.

But I think Bezos’ words are a great reminder that everything is temporary, whether it’s totally amazing or incredibly blah.

That’s a lesson that comes from life itself.