As discussed in Part 1 of this series, people have very specific reasons for why they buy things. When a person opens their wallet and forks over their hard-earned cash, they are trying to satisfy some kind of need in their life.

In Part 2 of this series, we’ll briefly cover a few of the top “psychological switches” — the things that click in a person’s brain, telling them they should buy something. Once you know why people buy, you can cater your marketing to satisfy that reasoning.

Here are the most common reasons people buy.

Switch #1: To make money

It takes money to make money. We’ve been told that so often that we all believe it. Watch late night TV for a bit, and soon enough you’ll see an infomercial for a grand money-making scheme. Thousands of insomniacs whip out their credit cards and buy whatever it is that’s going to make them the next millionaire (or so they’ve been promised).

People also spend large sums of money to earn a college degree with the belief that it will land them a higher paying job. After entering the workforce, they may seek out additional training to help them in their career or to get a new job in a new field.

Businesses also spend money on all manner of items that they believe will help them increase revenues. This can be equipment (faster computers for example) that will help increase productivity, or it can be advertising to help boost sales. Money is also spent in research and development of new products, employee training, competitive intelligence, and so on. A nearly endless list of myriad items that the company believes will help them make more money down the road.

Switch #2: To save money

When people hear this, the first thing they usually think is, “People buy the item that is the cheapest.”

The reality, however, is that buying something because it costs less is much farther down the list of reasons why people buy. This switch is more about spending money now for something that will result in savings in the future.

Imagine a person who drives a 1978 GMC pickup. It burns a gallon of gas every 8 miles and is in need of repair more and more often. There’s a good chance that this person will determine that he has reached the point where buying a newer truck will be less expensive than maintaining his current one.

Take a look at your own life and you’re almost certain to find several instances where you spent money on something in order to save you money in the future. Sometimes it may not have been the main reason, but it may have helped you decide to make the purchase.

A more efficient furnace will save you money on your heating bill. A cell phone plan with more available call time will save you money by preventing you from going over your limit. A water filter saves you from buying bottled water. An oven lets you cook your own food, saving you money on eating out.

Businesses often hire consultants to analyze their business to find ways to cut expenses.

The two switches we’ve talked about here are far and away the most common reasons people buy. In Part 3 of this series, we’ll discuss more psychological switches and ways you can combine them to make for more effective marketing materials.

This entry was posted on Wednesday, January 16th, 2008 at 9:45 pm and is filed under Online Marketing, Making the Sale. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.