Thousands of customers have been interviewed after they have purchased a product or service. During the sales discussion, they asked a lot of questions about the price and terms. But when they were interviewed later and asked, "What was the real reason that you decided to buy this product [or service] rather than that of a competitor?" they seldom mentioned price at all.

What we have found is that customers do not want the lowest price for a product or service unless it is identical to another product or service. What customers want is a fair price, a good price, the best price, a reasonable price, a competitive price, but not the lowest price. Why is this?

What we have found is that customers do not want the lowest price for a product or service unless it is identical to another product or service. What customers want is a fair price, a good price, the best price, a reasonable price, a competitive price, but not the lowest price. Why is this?

The reason is because every customer has tried to save money by buying a lower-priced item but ended up getting exactly what he paid for. The product or service was cheap, and the customer was disappointed. The merchandise broke down, or the buyer couldn´t get it serviced. In retrospect, he wishes he had focused more on higher quality than lower price.