Hardwood Floors February/March 2019

SALES SAVVY BUSINESS BEST PRACTICES

The Psychology of Irrational Decision Making

ImagesBigStockPhoto ©

BigStockPhoto ©

“Humanity is in the highest degree irrational so that there is no prospect of influencing it by reasonable arguments.” — SIGMUND FREUD

If salespeople don’t understand these biases, they will struggle to overcome these biases. In the fourth edition of Value-Added Selling , we explored the dynamics of decision making. Here is an overview of the biases that impact decision making and, more importantly, how to manage these biases throughout the decision-making process. IMMEDIACY BIAS Humans are hard-wired for immediate gains. Our desire for instant gratification served us well in the caveman days. If hungry, find food. If thirsty, find water. If tired, sleep. However, in today’s world, the ability to delay gratification is often considered a leading contributor to overall success.

Although Freud was describing how humans respond to therapy, he could also be describing buyers and sellers. Buyers can be irrational, so you can’t just use rational methods and techniques to persuade them. Buyers will choose alternatives using both rational and irrational criteria. This mental tug of war can be a challenge for salespeople. To change someone’s mind, you must first understand his or her mind. There are several biases that impact our decisions. These biases cause buyers to think your price is too high. These biases cause buyers to focus on immediate gains and ignore greater, long-term gains. These biases also cause buyers to stick with the status quo and ignore new ideas.

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