Customers would rather not lose something than save something. If offered the choice to not lose $100, or to save $100, the customer will choose the not lose option. This is an important marketing understanding. Always communicate the consequences to the customer of going without your product. The fear of loss is a much stronger buying motive than the potential to save.
For example, take the storm window manufacturer who claims its double-paned windows “Will save you $2.00 a day in reduced energy consumption.” It is more effective, more memorable, and more compelling to say, “You are losing $720 a year with your old single-pane windows. Try ABC Double-panes.” The gauge and controls company that says, “New Spillex Controller prevents overfilling, saving you hundreds of dollars in cleanup costs,” would generate more inquiries and more sales using, “Overspilling spills your dollar bills on the ground. New Spillex Controller stops your loss.”
Every benefit for every product can be dollarized. Every benefit for every product can be expressed in the dollars and cents and delivers to the customer. Every benefit can be calculated to show the economic value to the customer. The benefit can be presented as a saving for the customer, or as the cost of going without the solution.
It is always more effective to influence the customer by showing the cost of going without, along with any other consequences of not buying your product. Few customers knowingly ignore consequences and then deliberately buy an alternatative product just for a lower price.
The super marketer dollarizes the product benefits and then shows the customer what it is costing him per year, per week, per hour to go without the product.
Fewer than 5 percent of all marketers ground their product claims on benefits to the customer. Fewer than 1 percent of all marketers dollarize the value of their product and sell with numbers. Only the super marketer dollarizes and sells on the consequences of not buying.
Customers don’t want to lose. Do customers a favor: Warn them what they will lose if they don’t buy your product. When they buy, everybody wins !