Experiencing Low Sales? Here Are 5 Reasons Why Customers Are Not Buying From You

Every business exists to sell something and without
sales, all businesses would certainly die. Whether
you’re selling goods, products or services, the whole
idea of succeeding in business is to find customers
who will gladly give you their money in exchange for
that thing you’re selling. Every year, hundreds of
businesses close down around the world because they
couldn’t make enough sales to keep the business
going. Although there are several reasons why
businesses fail, this article reveals 5 of the most
common reasons why customers may not be buying
enough of your products or services. It is my
intention that you will find something in this article
that will change the way you sell your products and
attract more customers to your business. These 5
reasons you’re about to find out were first revealed
by Zig Ziglar, the great American sales and motivation
guru. With some common sense, I have adapted them
to the context of doing business in Africa. If your
business suffers from poor sales, I have no doubt
you’ll find this article very useful.
1. No need, no sales
Nobody buys food unless they’re hungry. The biggest mistake
most business people make is to sell a product that customers
don’t need. If I have a full tank of petrol in my car and you’re
trying to sell me another 30 litres, you’ll be wasting your time.
Why do I need extra petrol when I already have a full tank?
Even if I could afford the petrol you’re selling, I wouldn’t buy it
because I don’t need it!
Fred lives in a Lagos neighbourhood with a large population of
young working class people. Many of these people are single
and work from 9 to 5 everyday. They come back home tired
and spend their weekends catching up on lost sleep. Fred
comes up with a brilliant idea and starts a laundry business
within the area. He offers to pick up dirty laundry from peoples’
homes and deliver them clean and fresh in under three days.
What do you think happened? Business boomed! Why? His
target customers had a desperate need for the convenience that
his laundry service provided.
The problem is often that many entrepreneurs do not target the
right customers. We often go ahead to create an amazing
product or start up a business without first establishing that the
market has a need for what we’re selling (or about to sell). You
may sell a wonderful product or deliver an amazing and
professional service but if people don’t need it, they won’t buy
it, no matter how hard you try.
Why would customers not need the product or service you’re
selling? Here are a couple of reasons:
Competition – If there is a product or business that already
provides a solution to your target customers’ needs and problems,
they wouldn’t buy from you. Except they’re not satisfied with the
product or service they currently use, it would be difficult to buy
from you. However, if your product is more valuable (cheaper,
faster, better, safer etc) than the ones they use, they would, at
least, consider yours.
Substitutes – If I have a domestic help at home who does a good
job with my dirty laundry, why would I want to pay a laundry
business to do the same job? If my car runs on diesel and you’re
trying to sell me petrol (gasoline), why should I even listen to you?
If the market has a substitute product or service that already does
the same thing as your product, customers may not need yours.
The lesson here is simple: Any product that doesn’t solve an
urgent pain or a pressing problem will be a tough sell to customers
anywhere. More than 90 percent of sales happen because a
customer needs a product or service to solve their pains and
problems.
2. No money, no sales
I’ve always wanted to own an original Rolex watch. I
don’t just need it; I want it. I desire it. I am absolutely
qualified to own this product but I don’t have the
money for it; I just cannot afford it. Although I hate to
admit it, I am not the type of customer a Rolex watch
seller wants to see. No matter how much I love and
adore the product, what use am I to a Rolex watch
business if I don’t have the money in my pocket to
buy one piece?
Unfortunately, a lot of businesses are facing this
same problem. Everybody tells them their products
are beautiful and amazing but nobody is bringing out
their wallet to pay for them. Even when there’s a
serious need for the product or service, some
businesses still find it hard to sell their products to
enough customers. Why would this happen? Here are
a couple of reasons. (image credit: kuzabiashara.co.ke)
Too expensive – If your house was infested with rats and I offered
to sell you a product that would kill all the rats in an instant, would
you buy it? Of course, you would! However, what if I told you the
price of this product is $10,000? What?! To kill rats? I’m sure you’ll
take one day out of your busy schedule to kill all the rats yourself.
Even when the need is there and the product is right, a high price
can spoil a sale. For most people, price is a sensitive issue. If the
price is too high, they won’t buy. Period!
Wrong market – If you set up a Rolex watch business in a low-
income neighbourhood, what do you expect? Most poor and
middle-income people may strongly admire a luxury product but
they cannot afford it. That’s why location is a very important factor
in setting up any business. If you’re surrounded by people who
cannot afford to buy the products or services you’re selling, then
you’re definitely in trouble. As an entrepreneur, you must target
not just people who have a need for your product but who also
have the money to pay for it.
Bad timing – If you don’t understand the buying habits and
patterns of your customers, you may just be selling to them at the
wrong time. If you want to sell equipment to a large and
established company, you should know that the best time to do
this is just before their budget for the year is decided. Good timing
particularly works well as a sales strategy for customers who plan
their spending.
Recently, I learned an interesting lesson about timing from my kid
sister who sells clothes and shoes to her fellow students at
university. She tells me that the best time to sell is just when
students return to school after the holidays. At this time they’re
still flush with cash and are more likely to buy from her. Of course,
as the semester advances, sales drop.
3. No hurry, no sales
Have you ever wondered why you see those adverts
that say: “ Buy now at 40 percent discount.
Offer valid for 30 days only! ”
Procrastination is one of our oldest habits and a
fundamental part of human nature. Even when people
see something they like, they may likely not buy it
now and will most likely prefer to wait for later. The
longer they wait, the lesser the likelihood that they’ll
still remember or even buy your product at all.
Because people are likely to postpone a buying
decision, they often need to be encouraged to take
action and buy now. By creating a sense of urgency to
buy your product or service, customers have a reason
to make a decision immediately and reach out for
their wallets.
When you use hurry as a sales strategy, you also create an
impression of scarcity for your products. Nobody likes to miss out
on a good offer. Almost everybody likes to take advantage of a
discount to enjoy a product or service at a lower and cheaper
price. Nevertheless, there are a few ways to use the ‘hurry’
strategy to achieve the greatest effect. Here are a couple of ideas.
At start up – Hurry is an effective way to create awareness about
a new business and start making sales as soon as possible. A
friend of mine who opened a hair and beauty salon in September
2012 successfully used this sales strategy to attract customers to
her business. After the shop opened, she offered free hair
services, manicure and pedicure for 7 days only. Of course, a lot of
people came to enjoy the free stuff. That single offer attracted
most of her first clients who still remain loyal until today.
New product launch – If you are already in business but have just
introduced a new product or service to the market, the hurry sales
strategy would also work well for you. Offering the product for free
or at an attractive discount for a fixed number of days will give
your customers an opportunity to try out the product. If they like it,
they’ll still keep buying even after the deadline for the ‘promo’ has
expired.
A good point you should keep in mind is that you should always
use the hurry strategy with a fixed (short) deadline. Why would
anyone hurry to buy if the discount is permanent?
You should also make sure that you’re not being too pushy. The
aim of using the hurry tactic is to encourage people to make a
quick decision to buy from you rather than procrastinate. When
you’re pushy, most people become defensive and may just never
buy from you again. You just need to be cautious when you use
the hurry tactic on customers.
4. No desire, no sales
Most people need to be motivated before they buy a product or
service. One of the best ways to create desire for your product
is to sell the benefits and results. People want to know what
they’ll get or enjoy by spending their money on your product.
Mariam is 30 kilograms overweight. She has been making
plans to join a gym or start a weight loss program that will
make her lose weight. The problem is, she’s been planning for
five years now and still hasn’t done anything about it. She has
a desperate need for a solution but is too busy to do any
research to find one that’s right for her. She can afford a gym
membership but she’s too lazy to find one that’s close to her
house or office.
What do you think would happen if I walked up to Miriam and
told her that I have a proven formula that will make her lose her
excess weight in just three months? What if I went ahead to
show her ‘before’ and ‘after’ pictures of my previous clients
who reached their target weights using my formula? As long as
the price is right for her, Miriam would buy my product
immediately! Yes, after five years of delay, she would buy my
product because I did something differently. (image credit:
picturesof.net)
And what exactly did I do differently? I created a desire for my
product. By selling the benefits and results of using my product, I
created a desire in Miriam that allowed her to make a quick
decision.
Many entrepreneurs don’t do a good job of letting customers know
the benefits of using their products and services. People need to
know that your product/service is better, cheaper, faster, safer,
more effective etc. Here are two of the best ways I know to use
desire to sell more of your products and services:
Always sell the benefits first – Customers are selfish; they’re
always thinking about themselves and how your product or service
will work for them. They don’t really care about the name of your
product or the features that it has, customers are more interested
in benefits and results. As an entrepreneur, you need to get into the
habit of selling the benefits of your products and services first
before anything else. Rather than telling a potential customer that
you run a laundry service, tell them: “ I wash dirty laundry
and return them in less than 36 hours at a very
affordable price. ”
Be specific – The more specific you are about the benefits and
results your products can deliver, the better. By providing an idea
of the value a customer will get from your products, you show that
you’re for real and know what you’re talking about. If your product
or service saves time, give an estimate of how much time it saves.
If it’s cheaper than other products in the market, it’s a good idea to
mention the amount of money the customer could save by using
your product. It’s always better to get specific with the benefits
and results of your products.
5. No trust, no sale
It’s no longer news that our markets are flooded with inferior
goods and products that hardly work. We live in a time where
people are more conscious about the health and safety of the food
and water they buy and consume. Everyday we learn of products
and services that were paid for but never delivered. We live in a
time of scams and conmen, and most people are increasingly
suspicious of anything they buy unless it’s from a brand or
business they trust.