How to Make Buying Decisions

Running a business comes with lots of buying decisions and even more options.

From office supplies and software packages, to insurance companies, and so much more. Choosing the best option can be exhausting. It’d be easy to say yes to the first sales pitch from the first company you approach. History has shown us that the best sales pitch isn’t always the best choice. Knowledge is power. Having knowledge of the product which is being sold to you gives you power in a sales presentation to ask the right questions, evaluate its value to your company’s specific needs, and make an informed decision. Let’s think about what it takes to become an informed decision maker.

Where do you seek information on the product you are looking to buy, or the other person is looking to sell to you? Energized, eager salespeople are more than excited to tell you everything you want or need to hear to purchase their product. The goal of the salesperson is to make the sale of the product. It’s not necessarily to ensure that the product fulfills its purpose. They won’t know if the product or provides the most return on investment (ROI) for your business. You need to be able to make an informed decision. Will a product and its price will provide value for your business? Making decisions based on quick statistics or a sales presentation has the potential to be a quick fix, not a sustainable fix. Consequently, it can be a waste of your time and/or money.

As a rule of thumb, you should know your specific need before you make a purchase. For example, if you are looking for a new billing software for your accountant, but don’t know exactly which features your accountant uses or needs, how will you pick the right product? You could hear a sales pitch on a very high-end accounting software which provides lots of bells and whistles and sounds great, but its much more complicated and will require training for your accountant to even use it. Or you could approach multiple companies and find the cheapest software. But it may end up being worse quality than what you currently have. In this case, you’ve found the cheapest option, but wasted money because you still do not have the proper software.

In some scenarios, you’re not even looking for a new product or service. Instead, you are approached by a salesperson via phone or email. Let’s revisit the accounting software example. This time, you already have software, therefore your immediate reaction is to politely decline the phone call almost as soon as you answer. However, what if this software is a much better value or can increase efficiency in your office? Perhaps the product offers features which your current software does not. It might not, but if we are not making informed decisions across the board, we are doing ourselves and our wallets a disservice. The solution to this is to ask questions or even ask for a follow-up meeting in a week. This allows you some time to look into whether or not you need an updated accounting software. If you do, you can research which features this new product would need to offer for it to be better than the software you currently use.

When it comes down to it, knowing is key. Whether you are learning your specific needs before you buy a product, or you are taking time to ask questions about a product you’ve been approached with, a little extra legwork and background research will help. You can see that it’s possible to save money by spending money. Just a little research and you’ll feel confident in your buying decisions.