The Price Is Right: An Old Concept Is Making a Return

by golda on October 17, 2011

The Price Is Right: A Old Concept Is Making a Return
By Golda Smith
 
While making my kids favorite Saturday morning breakfast of pancakes, the television was on and i noticed commercial after commercial offering lay-a-way to the customers. just in case you have no idea what I'm talking about, lay-a-way is when a business allows you to make incremental payments for your product over a set period of time at which point you can take your product home.

When I was younger I remember go to several stores with my Mom so that she could make her monthly payments. Clothing, appliances, jewelry…you name it.

While watching those commercials today I realized that there's a generation who have no idea about the concept of lay-a-way. Most of us are used to charge now, take it home, pay later… with interest and sometimes late fees, but that last part doesn't apply to any of you I'm sure.

It got me to thinking of how this would translate online. How do you sell you big ticket items to your market? In today's market who has $597 to plunk down on your ‘must have’ program, even if it is exactly what they need? However, if they have the option to make 3 payments over 3 months then I'm almost positive that you will sell more.

Options…give your customers various payment options and they will buy more!

Even if an extended payment option means that they will pay slightly more money, which is good for your bottom line, you are still helping them get access to the information at no additional cost to you.

In addition, if that purchase helps them solve an immediate need, they will be faithful consumers of almost anything else that you produce but you must make it easy for them to buy. This should go without saying but I'm not talking about offering multiple payment options for a $29 product, I think that would be ridiculous, but maybe someone else feels different.

 
You’ll usually see this with coaching programs but I’ve seen some marketers offer this for medium to higher ticket items as well. They’ll even offer a money back guarantee if you’re not satisfied. Will there be people who purchase an item only to return it after getting all they can out of your product, sure…there are some jokers in every bunch but don’t have a poverty mentality. There will be more that do consume your product and will be thankful that you made it convenient to purchase. This is particularly attractive to someone on small budget.

The take away lesson I hope you understand and implement is this, people want to buy from you and the will if you make it easy for them. They also want to take care of their basic needs, you know like rent and insurance. So let's take a lesson from the gigantic retailers who are responding to what their clients have stated they need…more options. The next time that you’re flipping through the channels, take note of the holiday commercials and the bait they use to get you to spend your money with them.

 
 
 
 
 
Golda Smith is a single mom who is building her "Business From The Kitchen Table" and enjoys working with other moms to get them into the happy zone and living the lives they were meant to live! She has a FREE reportentitled “5 Ways To Talk To People About Your Business Without Ever Picking Up The Phone”. Don’t listen to another dial tone, get this NOW!

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{ 5 comments… read them below or add one }

1 Jeanie October 18, 2011 at 2:53 am

After reading this post, I certainly will pay much attention on commercials while watching TV on holidays and think about the concepts they offer us. Thanks a lot for sharing this information

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2 Raj October 21, 2011 at 4:28 pm

I was earlier the victim of offline installment schemes. Once I worked my way through it, I decided that I would never buy a product on installment basis. But this model might actually work online as people are used to buying things for a smaller value on the net.

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3 Golda
Twitter: only1golda
October 21, 2011 at 11:59 pm

Sorry to hear about your trouble. It’s a shame when people don’t behave ethically or with integrity.

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4 Kelli October 22, 2011 at 3:06 am

Very nice points. In today's debt-riddled society, the idea of "get it now – pay later" or even "pay some now, the rest later" is very appealing – even if it does mean interest will hit. Good point to utilize this for your own business. 

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5 Heather@best lightweight strollers October 23, 2011 at 9:02 am

Golda – as always you're a source of great ideas for our online businesses. Installments aren't something I would have thought of doing. I will watch tv commercials – those companies spend big bucks, might as well make use of their research!

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