For those of you who look at businesses online as a con, then you were an adult in the mid 1990’s the distrust we had for online ships and the wide growth in scams has came with the internet.
One of the problems as a leader in the development back then is the “better offer”.
This lead to the “if its too good to be true then it probably is.”
Over the 30 years of business and a lot of this being Online has had different impacts depending on what is on offer. GTWCMT group has been the back bone for the online business services comprising of 14 different businesses across many sectors.
One of the more notable difficulties is selling high value goods or services at low prices. Why? Well why would someone sell something for less? I will answer that a bit later.
The concepts of many people is that about the same, a little bit less appeals in their “mind set of security” however in my observations of the scams most recently is the “cheaper” and “near same” pricing of the same items to reputable brands and sellers.
This goes far into the psychology of buying and the brainwashing you have been subject to.
The psychology of buying is a fascinating field that explores the mental processes behind consumers’ purchasing decisions. Here’s a brief summary with key bullet points:
Summary: The psychology of buying delves into the subconscious factors that influence consumer behavior. It combines insights from economics, psychology, and communications to understand how individuals form beliefs about products and brands, and how these perceptions translate into buying actions.
Key Bullet Points:
- Emotional Influence: Purchases are often driven by emotions rather than just rational calculations2.
- Cognitive Biases: Decisions can be swayed by various biases and mental shortcuts2.
- Social Proof: People are influenced by the choices and recommendations of others2.
- Authority: Consumers tend to trust and follow the opinions of experts or authority figures2.
- Scarcity: Limited availability of products can create a sense of urgency and increase desire2.
- Reciprocity: The principle that giving something prompts an urge to give back can be a powerful sales tool2.
Understanding these psychological triggers can help businesses tailor their marketing strategies to better meet the needs and desires of their customers. It’s a dynamic field that continues to evolve with new research and insights into consumer behavior.
Put prices up…..
In one of the businesses I had to put prices up to make sales adding 35% to prices permits the buyer some comfort. the problem we had at the time was that we were world record holders and well know as the best in the world. The competition we had was very costly as a “luxury” item to be awed at by many, they were usual around 64% more to give you a sense of scale.
We on the other hand were marketing ourselves as “60% more for 40% less.” which would lead to the collapse of the completion. but we had a hard time in the early years as we are a social business, so we don’t do capitalism (profiting from people).
With big ticket items, we had no issues as again we were well known. Due to the “fame factor” this means that we had won international awards and had been on TV and published in several magazines. This would be the authority mentioned above. i would like to think “seeing is believing” is the right terms to use here..
What’s with solar?
I went over to solar as I had been asked many times about it, we happened to look at this in 2007 as part of the business expansion but pulled out as it was mostly scams. I went back to solar in 2018 just before the pandemic and many people were struggling. Then the price rises came. or was it the zombie apocalypses.. ( not much principle difference).
What I did notice the “rip off Britain” so wandered back into solar and went hunting. the idea was “charity and relief” for many and therefore it was a matter of price point. I have been in contact with councils and bodies who were interested in “solar” as energy poverty took hold. I have been involved in a lot of different charity work around the world over the decades and family and life are important to me as I’m sure it is to you.
You have to consider that while I’m “white English” my upbringing was by two different cultures. Social and republic. that’s the complete opposites to the UK culture of capitalism…
A Worth and a Value really does make a difference if you are ethical.
you need it, is a high value, its essential its worth a lot. do you agree with that?
Culturally speaking!
Here are mine:
- Family and Community: Close-knit families and a strong sense of community are central to culture. People value belonging and supporting one another.
- Storytelling and Good time: culture is steeped in storytelling, with a love for myths, legends, and witty conversation, with an emphasis on fun, laughter, and enjoying the company of others.
- Resilience and Humor: having faced many challenges throughout history, but known for their resilience and good humor. They can laugh at themselves and find joy even in difficult times.
- Tradition and Hospitality: Respect for tradition is important, with a love for music, dance, and the also renowned for their warm hospitality, welcoming visitors with open arms.
- Connection to the Land: I nation, and the sea and the land play a significant role in the culture. This is reflected in everything from traditional crafts to the importance of local food and agriculture.
- concepts emphasizing respect and courteous behavior. Building trust and rapport is crucial. Expect initial meetings to be cordial introductions before diving into specifics.
- Hierarchy and Respect: Titles and seniority are valued. Address people with appropriate titles and show deference to elders or superiors.
- Relationship-oriented: Business is often built on connections and personal relationships. Networking and fostering trust are important for long-term success.
Business meetings: Punctuality is expected, but allow for some flexibility. Be prepared for discussions to take longer than scheduled. - culture revolving around the concepts of courtesy, etiquette, and refined living. This is evident in the politeness of the people, their use of elegant phrases, and their appreciation for finer things in life.
- vibrant artistic heritage, renowned poets and writers…
As you can see there is a considerable different when ethical businesses and cultures are involved. The starting out point is a mutual understanding and respect. what many people do not understand is that in the UK you are subject to considerable marketing and buy pressure, while businesses focus of profiting from you. But you the consumer are at the end of the chain and the business you purchase from would have purchased from other and other and so on to the source.
Value = What is a good and fair price.
Worth= What is a good and fair price…
Other other upper hand is direct imports with culturally similar businesses around the world. we buy at a “good and fair price” while we cant help the governments taxations and duties, we do not have to deal with the “hands to feed”. while you may think that companies buy in directly this is generally not the case. What happens is there is a “food chain” where goods are imported and then shipped and then distributed. And with every step is costs and profits.
Lets take a solar panel.
its made, its then packed, and shipped which means that there are costs there. its then stored for shipping, and then shipped, it then arrives. its unloaded, stored, taxed, and then moved to a shipping business they have rent, taxes and bills as well as wages to pay, and want to make a profit. this panel only has gone to the wholesalers and they will have the same costs before its shipped to the seller. who also has the same costs. its common for businesses to add 15% so in the chain we just followed that’s 65% added for just profits. The Added costs differ depending on the company doing the work in the chain but if you added 20% on cost, and then VAT 20% well you’re looking at 100% more.
lets take a look at a popular item the Deye 800 micro inverter. our price £165 amazon £339 that’s a 65% price difference because we don’t buy in the uk or from a chain supplier.
To good to be true?
Offering the same product at a lower price, we ensure fairness and satisfaction for both the supplier and ourselves, as well as for you. I could create a double listing and price the inverter at £239, which may outsell the identical item at a lower cost, due to the common belief that “what costs more is better.”
I have never had any business that’s a hard sell. if you want it, then you would buy it.
So who losses out if you don’t buy? just you. and oddly you will also be happy in doing so. It does seem crazy when you objectively look at it, but that’s the way you are.
For those more refined and valued customers, (richer) they will be very much aware of this and that’s why they have accumulations. there is spend money to make money( investing /gamble), and save money to make money (frugal investor). as long as I have done my part leading the horses to the water…
Come and meet… talk in person
While I have gotten older and fairly anti social, I do lend myself to the odd video call and home visits with clients. but in contempt and transparency I think that many people are wasting time, hence I tend not to. There is little value in hardware sales as the margin is tiny but consultations and reports as well as installations and project management is a better value as you are paying for time. Quotes and estimates often “free” by others are NOT free here. It may seem odd, but it would not be a business or sustainable if there was no suitable income.
What do you think, should we offer free consultations and put our prices up?
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