Placement matters

Some people tend to not care about how they place or show what they have for sale. They make the assumption that their customers can make a decision without regard for the order. If they have a store, they figure if they show their products, people will either like them or not, regardless of what they see first, or what is next to what. Others realize that placement, order and location are extremely important.

WalMart spends millions of dollars on software to keep them informed of buying patterns. They know what products people buy together (for example, which salsa people buy when they also purchase a certain brand of chips). They realize that placement is VITAL to increasing sales.

While most of us aren’t WalMarts, we do have things available to purchase (products, services, time etc). Knowing when to offer the product, where and how will frequently make a big difference in whether you make the sale or not.

As an example, if a Realtor is going to show 3 houses to a prospective buyer, if they show the most expensive house first, it might scare the buyer off plus the other houses might be disappointments. On the other hand, showing the least expensive house first might open the buyers eyes as to what things cost for that price, and then showing a higher priced house next would allow the potential buyer to see options. If the third house shown is the most expensive of the houses (and hopefully the nicest) the potential buyer will have seen the whole range without getting sticker shock.

For lower priced items (there are a lot of other factors for high end purchases such as houses) people will tend to purchase the middle priced item. They don’t want to be perceived as buying the “cheap” one and the most expensive one is “too much”. Good salespeople can “manipulate” buyers by making sure the product they want purchased is the middle one, even if it means putting in a higher priced option they know wont be of interest.

Whether the placement in your case is with pricing, on the shelves or location on a website, placement is vital to the success of your business. Make sure you take it very seriously.

Have a great day!

Lawrence

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