Persuasion using emotion and logic...

Hi,

> Why did I buy the 10" compound miter
> saw that I did?

> I need a saw to make my repairs go faster.
> (NEED)
> I compared the price of two saws.($189.99 -
> $149.99)
> The sales write up on both saws was about
> the same,
> no hype just facts.
> They both did the same things. (I picked
> lowest price one)
> The only difference was the brand name.

> Question:

> Did I buy on logic or emotion?

> It seems to me since I compared the two
> prices, and
> they do the same job, I was using logic.

I think your point is valid, but I think most people don't buy purely based on price... If they did, then brands, packaging, advertising, and so on, wouldn't matter.

However, there is a percentage who DO buy mostly on price - these are the people who the various "no name" brand products are targeted at....

If you're just a small business-person, though, competing mostly on price can make it difficult to survive.

There are essentially two types of businesses - Low Price/High Volume, or High Price/Low Volume.

Businesses that thrive by competing on price can only succeed by selling things in high volume (since they make less profit with each sale by lowering prices, so they have to sell more stuff to make up for it). However, there is almost always additional overhead by selling in high volume - you need more sales staff, more customer support staff, and so on, to keep your large number of customers happy.

In contrast, selling things for a higher price, but in lower volume, requires much less overhead. You don't need as much staff to keep customers happy, because you have fewer customers. The main place where a High Price/Low Volume business can succeed is in niche markets.

Because of the higher overheads of a Low Price/High Volume business, I think it's much easier for a person to succeed with the alternative - High Price/Low Volume - approach. But if you're using this approach, then you DON'T want to compete on price! So you have to find something else to compete in.... Such as higher quality (eg. Rolls Royces), uniqueness, faster, lighter, heavier, more "cool", and so on.... Purchasing based on these things is often more emotional than just considering price....

- Dien Rice