Psychology & Sales

When we read about sales of large corporations, we are spellbound by the numbers. And sometimes in our mind comes the question, ‘how the hell do these companies manage to get such high volume sales?’ This question is valid though most people conclude that it’s just an outcome of huge money these corporations are able to pump in. Well, this is true, but not entirely true. Though I have no formal education in Psychology or Sales, I could make this claim, with some confidence. They say a University is a great place to exchange and learn new ideas. Absolutely! An informal discussion that I had with a psychology student made me aware of some simple principles of human psychology do help in boosting sales.

Most people visit a grocery shop for the following products (esp. true in the US), Milk, Bread, Vegetables, Meat, Ready-to-Eat products. In the current times when the markets are driven by the focus on customer's convenience, it would be intuitive to club all the above mentioned products together. However, if you observe carefully you will realize that milk and milk products are placed farthest from the vegetables and fruits. The aisle for meat products is never adjacent to the aisle containing bread or ready-to-eat products. Now is this arrangement a counter-intuitive set up or a deliberate move? Of course it is a deliberate move. By placing the ‘frequently-bought’ products in a scattered manner, the store gets an opportunity to display more and more products that one might buy. Trust me, these are the products which are never on your shopping list yet you end up buying them, and spend a comparable proportion of your budget.

Another interesting point that came in my discussion was, how an arrangement of few seemingly unrelated products, boosted the sales. It’s true, generally milk, beer and diapers are placed in a close proximity in most grocery stores. Why? Simple, people with kids are most likely to buy milk as well as diapers. Couples find it hard to handle young kids, which makes, going to bars, difficult. So, such people are likely to pick up some beer as well. A display of big collection of beers would definitely make them more vulnerable to buy it.

Now recollect your actions carefully, keeping the above points in mind. You too possibly have fallen for such a set up, involuntarily. There could be several such trivial points that may be put in practice that help boost the sales. The trick is in knowing your customer’s psychology. If you can generalize a few points based on the culture, climate and perhaps financial status, you could work wonders.