Why Buying & Selling Small & Large Products or Services is Fundamentally the Same
Most people will tell you that buying and selling different products or services is very different. I will tell you that they are wrong.
If you only look at the differences then their theory appears correct but if you look at the similarities then the process involved in an expensive, complex service is 97% the same* as a cheap, simple product.
The trick is to look at the buyer and not the seller. Based on my Dream-Reality-Trade Cycle, whether people buy a 99c tub of margarine, a $50 wheelbarrow, a $20,000 car or a $1,000,000 house the process is essentially the same; everyone asks the same 3 questions. Therefore purchasing margarine is the same as buying a car or house. The only real difference is in scale. The margarine is a simple purchase so people go through the process fast. A car is more complex (or so you believe) so people go through the process many times and more slowly which gives the impression that buying a car is different to buying margarine.
Interestingly, even margarine is becoming more complex. You can buy generic margarine for 99c for 500g or you can buy 'super healthy, premium olive and canola oil, cholesterol reducing, dairy free spread' for $4.99 for 250g.
Let's look at why there is still a market for both:
Scenario 1: A Uni student with $5 and a loaf of bread. Dry bread is hard to swallow and doesn't taste good.
Dream: to enjoy breakfast, margarine makes bread nicer.
Trade: There is a possible budget of $5
| Scenario | Dream | Reality | Trade |
| Generic Margarine: $0.99 per 500g |
enjoy breakfast, margarine makes bread nicer |
there is plenty of product, it will make bread taste nice adequately |
is easily affordable, money to spare for marmalade (or beer more likely) |
| Specialist Margarine: $4.99 per 250g |
there is less product, it will taste nice and be healthy |
will take the whole budget, won't taste 10x better |
Scenario 2: An affluent 45 y.o. wife with $5 and a loaf of bread. Dry bread is hard to swallow and doesn't taste good. She worries abut her weight and general health for herself and her family as well as social perceptions
Dream: to enjoy breakfast whilst ensuring the current and future health of her family, to stay 35 y.o., to appear to be affluent and caring
Trade: There is a possible budget of $5
| Scenario | Dream | Reality | Trade |
| Generic Margarine: $0.99 per 500g |
to enjoy breakfast whilst ensuring the current and future health of her family, to stay 35 y.o., to appear to be affluent and caring |
there is plenty of product, it will make bread taste nice adequately, the kids and husband won't care but it will not be healthy for them, friends will not approve |
is easily affordable, money to spare for holidays (or wine) |
| Specialist Margarine: $4.99 per 250g |
there is less product, it will taste nicer, will be healthy for self and family, will look good for friends |
will take the whole budget, quality will be much better |
The Song Remains the Same
As you can see the process is the same between these 2 purchasers. What alters most is the perceived value of the products. The poor student can't see over $0.99 value in margarine whilst there is a 99c product on the market. Yet the affluent wife can't see the value in spending less on a product that doesn't serve all of her needs (dream).
The difference lies primarily in the Dream and how it is interpreted through the Reality and Trade stages. See how as the Dream becomes more complex the Reality and Trade stages become more complex also. The core process is still exactly the same.
If we now look at a car purchase:
Scenario 3: An average 30 y.o. with a decent job. The existing car is old and a new one would be nice.
Dream: a shiny new car, the pleasure of a new toy, the joy of ownership, the feeling of affluence in getting a new major possession, having a model like a friend, security in a more reliable, safer car
Trade: There is a possible budget of $25,000 through a loan
| Scenario | Dream | Reality | Trade |
| Quality Used Car: $15,000 |
a shiny new car, pleasure of a new toy, joy of ownership, feeling of affluence in getting a new major possession, having a model like a friend, security in a more reliable, safer car |
low kms, well maintained, all required features, some extras, no warranty, |
is easily affordable, money to spare for holidays |
| New Car with extras: $28,000 |
no kms, more and latest features, factory warranty, more modern, shiny new |
will require extra money, loan is affordable, use extra savings |
The process is still the same it will just take this person quite a few more turns of the Dream:Reality:Trade Cycle to get comfortable to purchase. I will wager that this person will buy the more expensive new car but that is a whole other part of the story.
Again I say, the only difference is in the scale. What that means is, as a marketer or salesperson** you need to spend more time knowing the dreams of your customers and acting upon them than worrying about the differences in your product. Your Trade to achieve this is time.
The Web is the perfect place to take more time with people because you can offer massive amounts of information to support the dreams of your types of customers. Most sellers won't take the time but if you make the transition from Dream to Reality easy for your customers they will love you and the Trade will be easy because perceived value is high.
* Humans and certain types of monkeys are only 3% different at the DNA level. Most people are only 1% different to each other.
** As a customer you can take this understanding to free yourself from a lot of torture and potential to get the duped when making any kind of decision.
If you want me to work with your business then please visit BRM Web Consulting
