Last
week, I introduced the idea of the buying cycle. Specifically, I spoke
about the idea that entrepreneurs should spend a considerable amount
of time in the “Recognition of Needs” phase. If you have not read the article, click here.
Once
you have convinced your customers that they have a problem, you show
them your wares. You move into the “Evaluation of Options” phase.
Few
people call it the evaluation of options. We more commonly refer to
it as a presentation. Let me ask you this, have you ever been to
Costco and seen a presentation for the Vitamix blender? This is the
essence of the “pitchman.”
Blenders
are an interesting case study in the world of entrepreneurship. I do
not claim to know much about blenders. But, apparently, the
innovations contained within the Vitamin are strength and
durability. Fair enough.
As
I am sure you know, there is not much of a “Recognition of Needs”
phase when it comes to blenders. In as much as the blender was invented in 1922, people are rather well-informed. There exists few, if any, souls who do not know the problem a
blender solves.
For
this reason, everybody enters the buying cycle (pictured above) in
the “Evaluation of Options” phase. Again, this is the
presentation stage. Which is why it makes a lot of sense to give
demonstrations at Costco
I
have never timed how long the Vitamix presentation is. But, it can be
rather thorough. This only makes sense in light of the fact that the
machines usually range around $400-600.
Contained
within this group-presentation, you will also find the “Resolution of Concerns”
phase of the buying cycle. How would you resolve the concerns people
might have regarding the purpose of an expensive blender?
Well,
you would have people give their testimonials about how well the
machine has worked for them (though they do not do this at Costco.)
You would also offer special payment arrangements, warranties,
money-back guarantees, etc.
I
only offer the Vitamix example in hopes that you can visual the
lesson of these two phases of the buying cycle. How you facilitate an
evaluation of your option, and how you resolve your prospective
customers' concerns, will be dependent upon many variables.
Regardless
of how you do it, the point is, you need to cover these three pieces
of the buying puzzle. For the most part, they go roughly in order.
But, do not allow yourself to think the process must be linear.
Sometimes
things happen. A question can come up, an unexpected event can occur,
or any of a host of things can cause the process to go in less than a
straight line.
The
important thing to embrace is the fact that selling is an integral
part of entrepreneurship. And, in order to effectively sell your
creations, it in is your best interest to understand how purchasing
decisions are made.
I
hope this helps.
