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Wednesday, March 6, 2013

Putting Money in Their Pockets and then Set it on Fire

Get another idea to earn money if you can relate to the story below;
You've undoubtedly heard the saying "his money's burning a hole in his pocket." It's used to describe people who can't keep their hands off their money; they can't wait to spend it. I've done a lot of selling by first putting money in the prospect's pocket, then setting it on fire. You can too.
I sold millions of dollars of cassette learning systems to doctors in evening seminars; the seminar were free, but the doctors had to post a $25.00 deposit to guarantee they would show up. The deposit was "refundable" at the end of the seminar. After presenting the "commercial" and closing the sale, I'd do a "Columbo"- a sales techniques named after the rumpled raincoat-clad character played by Peter Falk and famous for saying, "Just one more thing..." I would say,

Oh, just one more thing, you'll recall you paid a $25.00 deposit to guarantee you'd be here this evening, and you've kept that promise, so your $25.00 is refundable. And we'll double that refund right before your very eyes; we'll match it with $25.00 of our money, so you can deduct $50.00 from your system purchase this evening. Just cross out $499.00 price, deduct the $50.00, and write $449.00 on your form.
Even with an audience that many would argue was too sophisticated for such a strategy, this worked magically. What I did was put $50.00 into their pockets and then set it on fire. If they didn't buy a system, they "lost" that $50.00, and that hurt!
I've replicated this strategy in other group sales situations, in person-to-person selling, even in direct mail campaigns.
General Motors and Ford are using a version of this idea with their "private level" Visa and MasterCard. You accumulate "rebate dollars" for using the card, but those dollars are good only toward the purchase of a vehicle. If you use that one Ford or GM Visa or MasterCard for all your credit card purchases, your= might accumulate $2,000.00 to $3,000.00 in "rebate dollars." With that money burning a hole in your pocket, is there any way you'll "lose it" and buy another brand of car? I don't think so.

Source: Sales Success by Dan Kennedy

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