4 Factors of Risk in Selling
The Critical Factor: Risk
The critical factor in selling today is risk. Because of the continuous change, rapid obsolescence, and an uncertain economy, the risk of buying the wrong product or service has become greater than ever before.
One of our powerful needs is for security, and any buying decision that represents uncertainty triggers the feeling of risk that threatens that security.
There are four main factors that contribute to the perception of risk in the mind and hear of the customer.
Risk Factor 1: Size of the Sale
The first factor that contributes to risk is the size of the sale. The larger the scale, the more money involved, the greater the risk.
If a person is buying a package of Lifesavers, the risk of satisfaction or dissatisfaction is insignificant. But if a person is buying a computer system for their company, the risk factor is magnified by hundreds of thousands of times.
Whenever you are selling a product that has a high price on it, you must be aware that risk enters into the buyer’s calculations immediately.
Risk Factor 2: Number of People Affected
The second factor contributing to the perception of risk is the number of people who will be affected by the buying decision. Almost every complex buying decision involves several people.
There are people who must use the product or service. There are people who must pay for the product or service. There are people who are dependent of the results expected from the product or service. If a person is extremely sensitive to the opinions of others, this factor alone can cause him or her to put off a buying decision.
High Performance Selling Workbook with CDs
“Get More Prospects, Close More Sales, and Make More Money Now”
Now you can double, triple, or even reach 100 percent on your closing rate.
The information you’ll learn in High Performance Selling is the same material taught in one of my seminars—A seminar that costs $10,000 and takes 7 days to attend. Invest in yourself today. Learn more here >>
Risk Factor 3: Length of Life of the Product
The third factor contributing to the perception of risk is the length of life of the product. A product or service that, once installed, is meant to last for several years, generates the feeling of risk. The customer panics and thinks, “What if it doesn’t work and I’m stuck with it?”
Risk Factor 4: Unfamiliarity
The fourth major risk factor is the customer’s unfamiliarity with you, your company, and your product or service. A first-time buyer, one who has not bought the product or service before, or who has not bought it from you, is often nervous and requires a lot of hand-holding.
Anything new or different makes the average customer tense and uneasy. This is why a new product or service, or a new business relationship with your company, has to be presented as a natural extension of what the customer is already doing.
In every case, you must overcome the customer’s fear of risk if you are going to make the sale. Everything you do, from the first contact, through closing, the delivery and installation of the product or service, and the follow-up to the sale, must be done with the customer’s perception of risk uppermost in your thinking.
Successful sales people are those who position their products or services as the lowest-risk product or service available to satisfy the particular need or achieve the particular goal of the customer.
Low-Risk vs. Low-Price
Your job is to be the low-risk provider, not necessarily the low-price vendor. Your job is to demonstrate clearly that your product or service represents the safest and most secure purchase decision rather than merely being the least expensive or highest quality.
Our customers today are the most experienced in customer history. They know that there is usually a close correlation between higher price on the one hand and greater security and after-sales satisfaction on the other. Your task is to make this differential clear in your sales presentation, especially when positioning you product or service against lower-priced competition.
Identify the risks that a customer might find with your product or service. Once you have clearly defined those risks, it will be easier to find solutions for them to ease nervous customers.
Influencing Customer Behavior
“Influencing Customer Behavior—Guarantee your Customers Buy More, Faster and at Any Price!”
Whether it’s a product, service or even ourselves–influencing others is a skill we cannot afford to live without.
In this program, you will learn the most powerful influencing strategies and techniques ever discovered in professional selling.
Click for more >>
See Brian Speak Live!
Only a few times a year, Brian and 4 of his best business advisors combine their expertise and equip 200 entrepreneurs with complete, strategic plans to build their own highly profitable and successful business. You can be one of them! Find out when and where you can catch Brian live by clicking here.
Share With A Friend
Know someone who might be interested in receiving this email? Why not share it with them!
twitter Follow me on Twitter.
Facebook Become a fan on Facebook.
LinkedIn Connect with me on LinkedIn
YouTube Watch me on Youtube.
Change Your Email
Update your email address.
Brian Tracy International
462 Stevens Ave Suite 305
Solana Beach, CA 92075
To order by phone or for customer support, call 1-858-436-7300 or email us at: firstname.lastname@example.org.
Customer Support Hours are
9:00 AM to 5:00 PM PST Monday through Friday
Home Page | New Releases | Best Sellers | Books | CDs | MP3s | DVD | E-Books | Teleseminars
Brian Tracy has been empowering business professionals by sharing his knowledge all over the world. His techniques will allow you to reach your goals and achieve the unthinkable.
© 2011, Brian Tracy International. All Rights Reserved.