Subscribe to Do Affluent Clients Buy on Price?
Category: Creating Value
Not usually.
They do; however, buy on value. That’s something the research tells us. The issue for marketers and sales people is HOW you create value.
Look in the Wall Street Journal and sample some of the ads. What you see are ads that say the following:
- We’re the biggest, we’re the best. That’s why you should do business with our company.
- Number of years in business.
- Some type of special offer.
Would any of these prompt you to call?
Maybe.
What if your ad for a high end country club said something like this, “My son turned 2 today. Our family and friends were treated to an exceptional birthday experience at XYZ Country Club. You might be thinking, ‘What a stuffy environment for a kid’s birthday party’”.
Not so.
The staff at XYZ Country Club developed a Sesame Street theme for the banquet room. It was spectacular. All the familiar characters kept the kids engaged and entertained. Even the food had themes.
Our family will never forget this day!
You can see where I’m going with this. You’re no longer part of the herd. You’re a club that offers exceptional family experiences.
More likely to resonate than our championship golf course. Don’t get me wrong. The golf course is important to golfers. it needs to be framed in the same light of an exceptional experience, not just another golf course.
Susan
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February 20th, 2008 at 11:10 am
I agree that in your above example the dominant call to action or buying motive would be the “family experience” - but don’t you feel that a fractional real estate or membership purchase must also be supported by some solid financial logic as well? Would you agree that other than the quality and quantity of the experiences through ownership, the seller must also convey that the new owner’s value must clearly be greater than their cost?
February 20th, 2008 at 11:42 am
I’m speaking more about advertising and how to attract an affluent client through a different method of advertising.
You would certainly need to prove value with solid due diligence materials that support a financial decision. Buy on emotion and justify with logic.
As you know, if value is greater than price, your chances of closing the sale dramatically increase.
I thought I’d present an idea that shows a different way to create value.
Susan
February 20th, 2008 at 12:00 pm
What other types of things are of value to the affluent? Family time, ROI, privacy, etc. ?
February 20th, 2008 at 4:36 pm
What you’ve done, Susan, is use distinctive features (qualities) to differentiate one experience from the common (herd) - which isn’t in the purest sense (and also IS in the purest sense when you get it)selling but rather presenting the quality of something people either will or will not value.
When people value these distinctions they don’t have to be sold and you don’t have to create value for them - they already recognize it in themselves, in their values and what they want and don’t want.
Excellent!
February 21st, 2008 at 4:32 am
Eric,
Most of the super affluent have built companies and, as a result, spent more time away from their families. They value family and typically have more kids than the average household.
ROI is important, but not a driving force when they make a purchase. Thy make more purchases in the ‘lifestyle’ context than the ROI context.
Hope that helps.
Susan
February 21st, 2008 at 5:22 am
Susan,
My friend who sponsored us into our business “bought” into it because he was looking for a family business AND he saw a noble purpose in 1. personal family product results and 2. a global mission with that same purpose.
Ron didn’t need either income or just buying a product - his decision was purpose drived - something with a quality that touched his values of compassion and caring. He’s told me many times that making money and living in future time for years had made his life feel empty and tasteless - while he consumed and took advantage of the best of the best money could buy it was becoming meaningless to him.
How common were Ron’s buying decisions/motivations to the typical affluant person/family?
February 22nd, 2008 at 4:14 am
I can’t speak as an expert on ‘purpose driven’ purchases.I sold jet shares, after all.
Many wealthy people establish charities that are in line with something they have a particular passion for.
Each person is an individual, and, as a sales person, I used questions to draw out their motivations. That would be my best advice to anyone.
Susan
February 22nd, 2008 at 11:24 am
So you are saying, Susan, that people who are affluent buy because of a value they see in something that matches what they value - it’s up to us to find out what that is - to draw out their motivatons as you say. Is that it?
BUT you are saying the value must stand out from the herd, from the common mass value.
Thanks.
February 24th, 2008 at 1:07 pm
Mitch,
If you can make the value of what you’re selling different and unique from your competitors, you have a much better chance of connecting and resonating with a potential prospect.
Here are 2 scenarios:
Your competitor’s message is ‘We’re the biggest, we’re the best’. My message is, “My owners buy fractional because it gives them the opportunity to be home at night to have dinner with their kids”.
Which message is more powerful?
Susan
February 24th, 2008 at 3:33 pm
YOURS! I got it, Susan! Thanks. I look forward to you insights.
Mitch