Consumers Spend When Value Exceeds Price
by Grant Cardone

The consumer will spend money when the perceived value of your offer is greater than the value of their money. Retailers and
businesses will only succeed in this economy when they are able to validate that the value of their product exceeds the value of money.
Not even the nastiest of recessions will stop the American consumer from spending money. Spending is instilled deeply into the
psyche of Americans and it will take more than a recession to stop this propensity to purchase.

    While spending will be reduced due to bad news, lack of credit and unemployment it will not
    be eliminated. Those that prove successful in selling their products and services will focus on
    value not price. Even emotional, nonsensical purchases will be made when value exceeds
    price in the buyer's mind. It doesn't matter whether it is a new roof, kitchen, vacation, a pair of
    True Religion jeans, Cartier Watch, HCG injections, an automobile purchase or employment.
    When the value of that purchase (or decision) makes more sense than the value of the money
    the action to purchase will be made.

The challenge for retailers is two fold;,
1) finding out who has the need,
2) doing a great job at building the value proposition.

Neither of these two skills has been needed for years. And do not confuse value with lower price. They have nothing to do with one
another. Lower price will not get the job done in this market, only the value justification proposition will!
Cash for Clunkers is proof that people not only want to spend but will even make long-term commitments when value is perceived. The
saving rates in this country has now reached the highest levels in 25 years, so don't believe the argument that people don't have
money. The consumer today has more money than a year ago but is being more selective! While the consumer is motivated to save
money the desire to spend money runs deep in our culture. Businesses that stay in contact with their customers and truly know how to
make the value-add proposition will continue to sell their products. Lowering your price will not be successful if you are unable to show
that the value of your proposition exceeds the value of money.

Grant Cardone is a speaker, author, sales trainer and CEO of Cardone Training Technologies.
Author of Sell To Survive and other Audio, Video, and training programs, for more information on Mr. Cardone visit

Grant Cardone, Author of "Sell to Survive".      
Cardone Training Technologies, Inc. •
6767 Neptune Place •
La Jolla, CA 92037                                        
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