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Quick Thoughts - Top Down Shoppers
Some people shop for the most expensive thing they can afford... and some the cheapest thing they'll tolerate. Which would you prefer to work with?
Tesla owners are top down shoppers, generally.
There’s two types of buyers in the world - which do you identify with?
Top down shoppers start with the best possible product or service and work their way down to what they can reasonably afford that suits their value preference.
Bottom up shoppers start at the cheapest product or service that suffices their need and work their way up to what they can afford that suits their budget.
Me, personally? I’m a top down shopper - and I’m the person you want to sell things to.
Bottoms up shoppers will start by pricing out Spirit Airlines and Motel 6 and use that as a baseline for if they want to upgrade their trip and stay within budget.
Bottoms up shoppers place priority on price over value. They are willing to sacrifice on many fronts to optimize for lowest price. As a result, the product or service is commoditized as much as possible.
Motel 6? Wait there’s a sale at Hacienda Inn? We’ll take that.
Top down shoppers optimize on value. They’ll start off by shopping for a suite in a boutique hotel and work their way DOWN to what they can afford. But their aspirations are to get the best that they can afford.
(Top down shoppers generally overspend on things they want or value)
How you price your product and position yourself in the market will naturally attract either a bottoms up or a top down shopper.
Are you competing on price or value?
Are you priced accordingly?
Is your outward messaging, brand, and marketing backing this up?