Money Tolerance is a topic I'm surprised to find I haven't written much about here, given that it is such a central concept not only to the sales training I deliver but also to life. Your life.
If we look at the 80/20 Rule aka Pareto's Law, and apply it to your life, we find this: a small number of beliefs and their resulting decisions turn into the majority of what you experience in life.
The purpose of thinking is to stop thinking. The vast majority of our decisions are made on autopilot, drawing on what we've done before, consistency, identity. The maintenance of identity is key, whether you're conscious of this or not.
The Consistency of Money Tolerance
Money Tolerance is a two-parter. It's a limiting belief to imagine as two goalposts: one lower, and one upper. The upper limit is easy to spot, at least when we're being truthful with ourselves (and we often are not). This is the number at which you start saying, "That's a lot of money".
This is a game we play. We play it first with ourselves, then with others.
You see, that number is a BS story. It's nonsense. One number isn't any bigger than another: compare your number to infinity. It's all a game. Why this number and not another? You probably heard your parents say it. "This washing machine is a lot of money." OK, $500 or $1000 gets locked into your mind as "a lot of money".
But it's not the same number for other people, and this is where many folks get stuck in the game they're playing.
"This car is a lot of money," Dad said about the Mercedes station wagon priced at $87,500 because he wanted the nice trim package. So for you, $1000 is peanuts; "a lot of money" starts at $80,000.
How This Key Limiting Belief Affects Your Sales Conversations
Different people are walking around with different money tolerance levels... but they don't know it.
So as a prospective customer, you can bump into somebody who has an extremely different belief in what the cost and value of what you offer as a business owner or salesperson represents.
If you grew up being imprinted upon that "$80,000 is a lot of money", but this prospect in front of you right now believes that "$500 is a lot of money"... can you predict what's going to happen?
That prospect is going to collapse. They're going to fall into themselves, because their belief doesn't support your price tag, and they're going to leave. They literally cannot stand being around the mere idea.
Take this in.
You can also use Money Tolerance as a qualifying tool: I certainly do.
I've explained for years how you choose your customers.
One of the levers you've got available to work with here is Money Tolerance. What if you were to use it to set a bar? So that only those people who already believed—were playing the game that the money number level of where you believe value begins is what they already agree with—were allowed past the velvet rope?
What if you only let people with a pricing-value belief matching your own see the offer?
A big part of positioning works this way. Consider Mercedes again. They're happy to give away whatever info is on their website to whoever wants to look: they know the vast majority of visitors are dreamers who will never qualify to buy. Only those who come into the dealership, and pass the test of answering some qualifying questions correctly, will get the chance to receive an offer to buy. Remember, those are the prospects who can stand there and participate with the idea of this investment as not being "too much money".
How can you take this concept to your own business and apply it?
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