Have you ever considered lowering the price of your products or services to get more sales? Low cost = lower barrier = more customers, right?

Wrong.

A friend of mine works for a non-profit organization and was selling a bunch of bracelets to raise money for a good cause. He asked for advice on whether or not he should lower the prices of the bracelets he was selling to increase sales. I told him no – and I’ll tell you why.

Playing the price game is a bad strategy for most small businesses. You have to understand that lowering your prices won’t mean more people will buy from you. Would you believe me if I told you that 95% of people purchase products based on feelings rather than logic? It’s true. Most people don’t make rational buying decisions. In other words, it has nothing to do with price.

If you want to learn how to increase your sales without lowering your prices, then the answer you’re looking for is hidden within your company’s mission and vision.

Mission and Vision

You usually see them in building lobbies or “About” pages on the website. What do these words mean? What purpose do they serve? Are they even important? The answer is a bold YES!

A company’s mission and vision statements are what a company stands for and where it wants to be in the future. All companies need to have them. It’s the mold a company structures itself on.

The mission is who the company is and what it values. The vision, on the other hand, is what the company wants to become.

Think of your mission as the starting point in a race and your vision is the finish line.

If other people wholeheartedly believe in your company’s mission, then they will support and promote your company. A good mission statement will increase others’ respect for your company and lead it towards the company’s vision.

The vision acts as a target for where the company wants to be in a few years. Having a clear vision for the company encourages people to help the company get there.

Increase Sales Through Your Mission and Vision

Now that we’ve established the importance of a company’s mission and vision statements, we can get down to the reason you’re here: increasing sales.

Studies show that people purchase products because of their emotions and how they feel about the product and the company. This is why it’s crucial to properly communicate your company’s mission and vision statements. Companies who don’t know how to articulate the impact or the mission of the product end up missing out on the emotion of the sale.

The why behind the product and the company will bring you more sales. So, as you are selling your products and services, communicate the mission and vision so people can connect with the emotion of your company.

Let’s take luxury brands for example. Think about why most people buy a luxury brand purse. It’s definitely not because of the quality – no material or handiwork is worth the $24,000 some people spend on a purse. It’s because it’s a status symbol. The luxury purse makes a statement about who they are, and they like how that makes them feel. It’s an extreme example, but the same thing happens on a smaller scale all the time.

To Conclude…

Let’s go back to my friend and his non-profit. They’re raising money for a good cause, which the bracelet supports. Someone who buys that bracelet isn’t doing it because they need a bracelet. They’ve bought into the cause the bracelet is supporting.

My friend doesn’t need to lower his prices to raise his sales, he just needs to properly communicate the why behind the bracelets. If he emphasizes the meaning, people won’t care about the cost.

If you’re stuck in the same situation, remember what I told my friend. Take my advice and learn how to properly communicate the emotion you want your customers to experience when they buy your product or service. If you do that right, you’ll find that a higher cost is not a barrier for your customers.

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