What makes people buy goods or services?

[Beth n Rod 1,279]

It can be said that there are basic reasons people buy goods or services. People are motivated by different things. What makes people buy services and what economic indicators impact purchase decisions?

Have fun!:cool:

Beth

[Cleveland Mobile 14]

I was once taught something that I have always felt hits the nail on the head.

1. want - you know they want it....they called you

2. need - point out the need for the service and how important it is to their home

or business that they use the product or service you are offering.

3. value - explain the value in their service....we've all heard it "mr and mrs home

owner it will pay for itself in a few years" Although our services dont

usually fall into that category, there is plenty of value in protecting

their investment in their decks, homes, or whatever. Explaining all the

steps you are going to take .."and for all that mr and mrs homeowner

the price is only ...." I have found most people say no because they

dont realize the size and scope of the job. If they get other prices we

havent gotten the value of our services across....if they try to do it

themselves......we failed miserably.

Andy

[PressurePros 248]

These topics just get better and better (to me anyway, I thrive on economics) I have taken a stab at several businesses. All of them have been succesful to a degree, but I have been looking for that one industry where I could impact the marketplace as a whole. I have heard many guys complain that pressure washing "ain't what it used to be". I don't see that as a bad thing..with more stringent standards to live up to, we are creating a more specialized niche and viable business opportunity. Its the old time methods and widespread ignorance to what we do that created the consumer doubt in the first place. I say "good riddance" to the old time methods. As dollars and awareness increase, more guys will take a stab at jumping into this thing. There is a positive to that...The increased competiton will force business owners to tighten ship, refine margins and set themselves apart in terms of customer service, professionalism and job quality. The non hackers will be weeded out quickly. With the growth of the industry so rises consumer awareness. I believe we are in the infancy of a boom stage. Everyone reading this may one day be running an empire in 2015 laughing about the hard times and the days of just one truck and 70 hour work weeks.

[RyanH 14]

I'm a typical stubborn guy. If I think that there is any chance in the world that I can do a service myself, then I'll do it. Cut my own grass, paint my own walls, clean my own house (I run a janitorial business, so this is no big deal!!), wash my own cars, etc. I do realize, however, that there are some things I'm incabaple of doing and I will hire a professional service to handle it. Things like auto maintenance, installing windows and vinyl siding, and operating on my appendix are things I'll hire out. There are times, however, when I have hired a professional and they have screwed up on the details. Example: my car had a problem with the brake lights not coming on. On this model of car, this will prevent me from putting the car in gear, so I can't go anywhere without a manual override. I took it to the dealership and they charged $70 for a diagnostic and another $200 to replace a faulty switch and wiring. Six months later, I had the same problem. They were going to charge another $70 for a reevaluation and problem solving session. Being one to listen to the addage "Once bitten, shame on you; Twice bitten, shame on me," I decided to look at myself. I rummaged around, found the "faulty" switch, used a little sandpaper to clean the contacts, reinstalled it, and haven't had a problem in the last 50,000 miles. This took about 10 minutes to do. Professionals did not work for me in that regard.

Necessity mandates when I will call for a service or a product.

[PressurePros 248]

So what make a business viable? Andy nailed it... I would also add these:

1) To whom does the product appeal demographically? In this case every homeowner from trailer to mansion.. every commercial outlet from a water ice stand to a supercenter.

2) Is there an ongoing need for the product? Yes.. mold regrows, decking stain fades, pollution resettles

3) Is the market saturated? Some may think their market is saturated but if you do the math, even in those markets.. what are we talking? One pressurewashing contractor per 20,000 people? There is a long way to go until we reach saturation.

Other considerations are..start up costs, inventory neccessity etc. Alll minimal.

If you look at the economy overall, we are bordering on an inflationary period. Now is the time to get your prices in line. Strike while people know that gas prices are up.. Comment how your wife was just complaining about the price of milk. Make them comfortable that even though gas prices have risen 25%, you're only going to increase their housewash half of that percentage. They have the money. Remember what is driving the inflation is the cost of money. Rates are low... The homeowner has benefited from that with an increase in the value of his home equity. It should be a given that he would want to spend more to protect his investment.

I am passionate about this and some people may take it wrong as that I want to gouge, get rich etc.... We are offering an valuable service that the home/business owner needs. He may not yet know how much he needs it, its up to you to show him. Stop selling yourself short. Now is the time to grab the biggest piece of the pie while its still on the plate and become a pioneer in your market.

[Beth n Rod 1,279]

I agree. Failure to respond to the current econmic conditions we are facing will create potentially unrecoverable problems for the small business owner.

How many of you have notices that just about anything you consume (food or clothes) has risen in price over the last year? How about your electric bill? How about your insurance? Your gasoline or other fuel? The costs of godds sold will only continue to increase as gas prices do. I have heard the buzz about various costs for materials we all use in our work going up this year. Raw materials effect chemicals and sealers. At basic personal necessities increase, so too must labor wages, an in turn the taxes we pay as matching employers will rise. Fuel effects everything. Amazing isn't it?

But I'm off topic..... why do people buy...ah yes...lots of reasons for that. :)

Beth

[RyanH 14]

Hey peeps, throw some money towards DuPont stock. Some of the work we (students) did for them a short while back was for one of their initiatives to get almost completely away from the dependency upon fossil fuels as their stock chemical for making products. In this case, it will be a viable replacement for nylon (replacing carpet, clothing, etc.). They will be virtually independent upon oil prices, or atleast will not be nearly as impacted upon rising prices, and will be in a position to offer their goods at a lower rate: increase market provisions.

And Ken, SHAME ON YOU!!! There is no such thing as price gouging. People will pay what they believe is a worthy price for a good, otherwise they will not buy it. I think that theory is sound for every product / service. Prove me wrong! (okay, that sounds harsh...I'm just playing with my strong tone, but I do think that gouging is a socially invented idea and has no economic viability).

Merry chr'mas eryone!

[PressurePros 248]

And Ken, SHAME ON YOU!!! There is no such thing as price gouging. People will pay what they believe is a worthy price for a good, otherwise they will not buy it. I think that theory is sound for every product / service. Prove me wrong! (okay, that sounds harsh...I'm just playing with my strong tone, but I do think that gouging is a socially invented idea and has no economic viability).

Merry chr'mas eryone!

Ryan you are my hero. LOL.. Can you say that again in case anyone missed it the first time?? Merry Christmas to you too. Someone pass the eggnog.

[Beth n Rod 1,279]

:cup: :martini: :cheers: eggnog..... your choice of cups.

Beth :groovy3: