“Why do they buy where they buy?” This is an age-old question that has been asked by myriad people in myriad rooms across the globe. And the more I think about it, the simpler the answer seems.

People buy because they “have to” or “want to.”

Let’s look at “have to” first. Why do they have to? Perhaps what they currently have is broken or aged out. Few of us have ever bought a water heater or furnace because we wanted to; it is because we had to. Similarly, you buy toilet paper because you don’t want to run out. You have to have it. Now, in our industry, when a shelf falls, people often feel that it is a reason they “have to” buy.

When someone “has to buy” something, the decision is usually based on simplicity, speed, and availability. Typically, when you have to buy, you don’t have the luxury of time, so shopping around is not a priority. If you like someone and trust them, you will buy from them. Sometimes, even if you don’t like or trust them, you will buy from them because they are the ones who have what you need when you need it.

Most of us have experienced buying a car at some point, and for some, it is not a pleasant experience. But when we find the make, model, and color car we want, we give them our money. Especially if we feel that our options are limited and we can’t think of another place to buy the car. If we need it and find what we want, we buy it.

Our products and services often fall into the “want to” purchase category. People want the product or service we provide, so the question is, “Why do they buy where they buy?” If someone wants what we provide, can afford it, and intends to purchase it, then why do they buy it from someone else? Or why do they buy from me?

I have often pondered this question. I want to know why they buy from me, so I can be sure to keep repeating it, and if they did not buy from me, why did they buy it from whoever they bought it from?

The list below are some of the reasons why I think people buy. Please send additional reasons that I may not have included to [email protected], and I will write a follow-up article based on what you have shared. At the end of the day, the reason we read this magazine and these articles is to learn how to do better and what to do better. We are all learning; if we stop learning, we stop growing.  

Price - The first question you want to ask yourself is where you want to be on the Price Range Scale? Do you want to be high but worth it, or low and get more jobs? Both thoughts have merit, but you want to make this decision about your company and your brand. Is price important to everyone? I think not. For some people, yes, price is their driving factor. I believe that if you are within 5%-7% of your competitor, you can still make the sale with good design, and being good in sales, along with the following in your corner.

Availability/Timing - These past few years our industry has seen an increase in the amount of time we make our customers wait. While this may be a good feeling for us, some customers do not want to or cannot wait for us. They may have family coming into town, a new baby on the way, or a college kid coming home from school. Sometimes it can be as simple as being in the right place at the right time.

Capability - Our Storage & Organization industry encompasses many products and methods, from a Rubbermaid plastic tote to a mahogany custom cabinet with 3-piece crown moulding. Can you provide what the customer wants? Are you capable and willing? In 1997, I had an appointment for a primary bedroom closet that was newly built in an existing home. Because the homeowner wanted a curved entryway into their large bathroom, the opposite closet wall was also curved. This curve was 18 inches long, and the owner thought it would look cool if the closet shelves followed the wall. I thought the amount of time we would spend trying to figure this out would prevent us from completing jobs that I knew we could do and do well. I also questioned how many curved closets I would encounter in the future. I told the prospective client that I did not feel we were the right company, and I recommended a competitor for the job.

Relationship - We all want an appointment where the prospective client already knows us or knows someone that knows us. Why? Because trust has already been established. I have been on appointments where I learn that the client bought a closet years ago from someone else. When I ask them why they called us, the answer is either “their previous experience did not go well” or “they just want another price.” When the answer is the former, my confidence in making that sale increases. When the answer is the latter, I usually say, “I know the company that did the work, and they are a fine company. I would just go and trust them.” It is very difficult to break a relationship if it is a good one. I would rather spend time working with someone that is looking to establish a trust relationship.

Brand/Image - Yes, some people make their purchase decision based on a brand. We don’t go to McDonald’s because it is the best hamburger, we go because we are confident of the product we will receive.

We buy shoes at DSW because we believe the value is better, or we buy ECCO shoes because we believe the “long-term” quality/value is better.

People buy a Rolls Royce, not because they need a car, they buy it because of the image it presents. What image are you projecting? What image is your company projecting?

Like & Trust - If your price is competitive, your designs are good, and people like you and trust you, people will buy from you.
Your goal could be to look at this list and understand how you and your company are perceived in these categories.

Finally: Be proactive: Be sure to address how your company fits perfectly with your potential client in the above categories during your appointment and your subsequent follow-ups.

Be reactive: Create in advance responses to these categories when your prospective client brings them into the conversation.

Editor’s Note: Tim Coleman will present “Am I Charging Enough? How to Find the Pricing Sweet Spot” at the 2024 IWF Closets Symposium on August 5 at the Georgia World Congress Center. Register at iwfatlanta.com.