The family just bought itself a 32 inch flat screened television set.Nothing fancy.Just an unknown brand,called Sirius,from a local company.I saw it on sale for 100 pieces at AMK Hub and promptly relayed the info to my sis,who headed down the next day with the family to purchase it.Just prior to that,we had done a bit of survey at Mustafa Center to get a ‘feel’ of what will make a great addition to the furniture.
Before anyone jump on that conclusion that,it’s just another atypical Malayish,Hari Raya purchase,it will be worthy to highlight that my sis bought it,with the rest chipping in a bit,with the money she earned over the past month selling potato chips.Hahaha.I have to say that I admire the tenacity at which she worked the hours to gather that sum of money,and I felt that it was just due reward on her part,to purchase a big ticket item.Do we need the television set?Obviously not.We have one 24 inch working one.But do we want a flat screened one?Yes,we did.
Thus I arrive at that old age conclusion that,purchase are made out of wants.And people justify it by saying and claiming that it is a need.
I want a flat screen TV.To feel good and not guilty about it,I reason with the logical explanation that I need one,because,the old TV’s resolution was getting bad.
I want a new XBOX 360.I justify the want,by saying that I need the relaxation time after a hard day’s work.
I want a new girlfriend.I justify it by saying that I need someone who really understands me for who I am.
Get my drift?
The thing here is that,there is nothing absolutely wrong with the schematics of purchases.It’s a natural buying psyche.You buy a car,not because you need it.You want it.And that is what any decent salesperson do.They will reason out your wants to appear as needs.And,your emotional self,not wanting to feel guilty,will have the tendency to agree heads on.
Salesperson: You see sir,you need a car,because you are a frequent traveler.You need the comfortable accessibility.Besides your family will need the comfort.Do you need to want to travel by bus with people shoving?You need you r space right?
You: Where do I sign,to get myself involved in a ten year loan,contributing to the credit crunch.
No offense to car owners or will be owners.I believe I will walk that same path too.Of getting a car that is.Because I want it.And when I want it,I will need it.And thus I will be involved in the same process.
It’s just that,it is an interesting dynamic to think of.Appealing to the wants,get things moving faster.
I changed my whole sales presentation,and I can see the immediate result.I used to blabber about people needing the life insurance.Why they need it lah.Why they will suffer if they do not meet this need…
Last Sunday,I just changed my approach…note my words.
Me(M) : So what made you thought about getting some sort of financial plan?
Prospect(P) : My friends have been talking about it. They recommended AIA,but I thought I might as well talk to you first.
M : Excellent!So basically,you WANT to have your finances planned one way or another lah?
P : That’s right.
M : So tell me.If or when you have a financial plan,what is it that you WANT in your plan?What are you looking for?
P : You mean,benefits?I want myself to be covered and my parents too.
M : So let me rephrase that.You WANT a plan that covers your health and life?
P : Yes.
M : I can do that.What else do you WANT?
P : That is all for now.
M : Excellent! Now since you mentioned that you want to be covered,right? Tell me,how much do you WANT to be covered?
P : Am not sure.
M : Imagine a scenario where you are no longer around,and you mentioned that you WANT to provide for your living parents.How much do you WANT to have for them monthly to see their basic needs?
P : 1K
M :Great,let me write that down.Now how long do you WANT this money to last them?
P : Until they are no longer around…
M : That means,with good health and your parent’s age,that’ll be another 21 years?
P : Yeah,roughly.
M : (calculates)That’ll work out to about $264,000.Is this figure okay for you?
P : Yes.About what I can estimate.
M : Great!Now let me ask you a question.Since you have this figure in your view,do you WANT to take on the challenge of raising this money yourself,or you WANT to have a financial plan to cater to it.
P : A financial plan,obviously.I cannot raise that sum myself.
M : If that is your commitment,how much will you WANT to put aside to cater for this planning?Considering the numbers in mind.
P : I’m comfortable with $200 – $300 a month.
M : Fair enough.Now let me get a definite commitment from you.The range you gave me is still vague.Do you want it to be $201 or $299?
P : Okay,I can commit to $200 a month.
M : Great!So can I get your verbal commitment that you will commit $200 every month for at least the next ten years,to secure your provisions?
P : Yes,I believe so.
M : Good,we have a deal then…(and I took out my pre close form)
The thing is,the whole process had to be carefully worded.I visualized that process in my head several times prior to the appointment just to make sure I do not sound corny or pushy.I believe I had made an impression.Well,getting her to commit verbally was already excitement for me.Because I only met her for the first time anyway.
There is a lesson to be learned from that.WANTS are justified by NEEDS.If you appeal to a person’s wants,you have captured his needs.
A process I will remind myself…for a better future.