Why More Small Businesses are Using Psychology to Boost Their Sales

    January 24, 2002

If you want a truly successful business, you need to take a close look at how Psychology can set you apart from the rest of your competition.

Dynamic Psychology can be applied to all aspects of your marketing efforts and will give you that vital edge over your competitors.

All-time secrets of negotiating

Remember this: no matter how great your product or service, unless you can negotiate innovatively you’ll never achieve the success that can rightly be yours.

When you approach prospects, ask them if you can explore how your mutual expertise can benefit both sides. This is very powerful from a psychological point of view because you are telling prospects you want to understand their needs.

Remember Stephen Covey’s advice from his groundbreaking book: “The 7 Habits of Highly Successful People” – Seek first to understand, then to be understood.

How to make people respond more quickly

Philippa Davies, psychologist and expert in communication skills to heads of state and business leaders, says: “People respond more to what they are going to lose than to what they are going to gain.”

She adds: “It’s very powerful when you explain to prospects they will probably lose market share to their main competitors if they don’t adopt your ideas.” Ask yourself: What will my customers stand to lose if they do not buy my service or product?

Psychology can also play a powerful part in overcoming objections to requests for a sales meeting. There are two strategies that will result in incredible opportunities comingyour way. Try them today.

Tell your prospects you really want to understand their needs precisely and you feel you can’t achieve this unless you talk to them in person. People want to feel understood more than anything else and the businesses who understand this take all.

You can also add that it will only take, say, 12 minutes, (let them time you!) to show them how they can benefit from what you’re offering. You can also offer to give them a free gift (low cost with a perceived high value eg reports, gift certificates etc) if they think you’ve wasted their time.

The greatest packaging secret revealed

Did you know you’ll increase your sales by using appealing photographs of typical users on your packaging?

Why is this? Well, it humanizes your product or service and prospects perceive you to be more professional and trustworthy.

You can also take advantage of this powerful tip for your promotional brochures and website. For one-person home-based businesses, always include your photo on your letterhead and other sales literature.

How to avoid the biggest mistake of all

No matter what type of business you run, you must sell benefits, not features. If you sell your product or service using features, you must stop this mistake immediately.

Suppose you sell accommodation, you can sell its features: “Large rooms overlooking the sea with private facilities”. How many advertisements do you see like this?

If you sell benefits, you sell customers a lifestyle and that’s psychologically powerful.

For example, you can productise by offering “Romantic vacations” (your product) with a special offer of 5 nights for the price of 4 (innovative pricing to encourage a larger sale). You can then detail why they are romantic, for example, free champagne on arrival, and rooms with four-poster beds and whirlpool baths.

The possibilities are endless no matter what type of business you run. The secret is to turn your service or product into a package and combine it with innovative pricing.

How to price for profit

Let’s take a closer look at pricing for success. Psychologists tell us that prices ending in “7” sell more than prices ending in “9”, for example, $1.97 will probably be more powerful than $1.99. Do you use this technique? Test it and see.

Do be aware that if you sell a prestigious product or service, this will “cheapen” its image, so avoid this strategy for expensive products.

You can also lower your price if customers buy larger quantities. For instance, $40 for one or $97 for 3.

Yet another powerful psychological pricing strategy is using a technique that appears to lower the value of your product.

For example, if you charge $500 per year for your service, you can offer this for “less than $10 per week”. It’s the same price eventually; however, can you see why this is more appealing? $10 will attract more immediate attention than a whopping $500.

A rosy future

When you can utilise the immense power of psychology in all your marketing efforts, you’ll reap the rewards quickly.

Build your business on firm foundations and enjoy the fruits of your new-found success.

Brian Li is head of the UK’s Business Growth Centre. Discover how to get virtually every job you apply for and a host of incredible secrets to skyrocket your sales: http://www.businessgrowthcentre.com Also discover the best overall program on the planet: Hits USA: http://www.hitsusa.com/go/00001083 Copyright (c) 2003 Brian Li