I was recently on a sales call with a potential client. We offered what I believed to be a superior product and service. When it came down to talking about price, I was told that the only thing that was stopping him from moving forward was price, furthermore if I wanted to earn his business I would have to lower my price to be in the same ballpark as my competition, it was clear to me that he did not understand the value that my product offered and until he did this sale would not move forward.Before you start talking about price you need to understand the value that your product can offer your customer. Too many sales people either forget this or do not understand this concept. If you don’t, you will find yourself in a price war that, chance are you will not win! If you do win the business, remember you now have to give the same level of service at a much lower profit margin.
I can tell you from experience that if someone that buys from your strictly on price, they lack loyalty and will will be your biggest pains in the ass! Remember they view your product or service the same way they view your competition and it is your job to differentiate yourself; after all you do sell a superior product and service don’t you?
The power of value!
Value can make all the difference in a sales presentation it is what differentiates good products from great products. People will pay for value, they just need to understand how to position it, seriously, understanding how your product or service will benefit the client is truly half your battle. In fact, sometimes the one thing that can differentiate you and your competition, sometimes its the only thing. Fortunately for you, companies that sell on value are few and far between.
In my opinion, selling value means being customer centric. Understanding your customers needs and building relationships takes precedence over just getting a sale. Too many sales are lost because the sales person did not understand the person on the other end of the phone. (Notice I said person not prospect!)Didn’t take time to understand this persons business, and was only concerned about the dollar value the prospect represented.(Notice I said prospect not person!)
The value of a relationship!
Never underestimate this! Don’t fool yourself into believing that the sales process starts at the time you say hello, it actually starts after your product or service is delivered to your new partner (Notice I said partner not person!) if you treat your new partner right you have the chance of building a fan of your brand, once they are a fan, they will eagerly promote your product or service and will be willing to give you a referral or two or three. Let us also not forget that that if you build a relationship with your new partner they will feel a sense of loyalty, loyal partners don’t leave, even when things go a muck. Remember this will take sometime however do you think that your competition, the company that sells strictly on price, wants to build relationships? Probably not!
Marc,
You are absolutely correct. Businesses that are focused on selling on price instead of value will always lose out because someone will always come up with a better price. We do best when we focus on value and educating our prospects on “how we do it here”. It’s easy to differentiate ourselves when we focus on educating our prospects instead of going straight for the sale. I like the way you noted the distinction between prospect and person in your post.
Enjoyed your post.
- Joel
Thank you Joel for taking time to check out my post. I wish more sales organizations bought into this technique. Everybody talks about it but not to many sales professionals demonstrate it. The sales process should be a mutually beatifically experience in my opinion. Thanks again
Marc