Addressing the Cost Beyond Price
For your customer, the cost of doing business with you isn’t only that tally on your invoice. They also pay a mental cost. No – you’re not taxing their self-esteem or putting pressure on their ego.
But you are making them think. They may well fret and worry over the decision they need to make. And they’re using up their brain cells as they figure out what to do.
“Mental costs represent the ‘soft’ elements, especially friction and anxiety,” according to Flint McGlaughlin, CEO and Managing Director, MECLABS Institute. “The marketer must remember cost is not just a mathematical calculation; it is especially a psychological calculation.”
So, beyond the financial cost they pay with a check, credit or debit card, this is the cost of the decision – and the friction and anxiety the customer faces in that decision.
For example, anxiety may come from contractor choice. Somehow, they’ve got to determine if you’re the best deal compared to your competitor. Are you honorable, will you install the system correctly, will you be there if anything goes wrong? Social proof and risk reducers (testimonials, warranties and guarantees) help here.
Friction could be one of time consumption. The calculations include setting up a time to meet you for the estimate and returning home again for the installation. Convenient scheduling can help address the inconvenient.
Bottom line: Make it easier for your customers to make a decision, and sales will close easier for you.