Issued by: SALESGURU Publishing


How many times have you seen someone handing out free stuff at the robots, and you simply drove past? It's FREE and you still won't take it! Why? Because you don't see the value. You don't believe that taking that gadget or pen or free chocolate will add much value to your life - it'll just litter your car and eventually be thrown out. The effort required (not much more than winding down your window and sticking your arm out) doesn't equal the items perceived value; and so it's a no go.

The first step in taking price out of the selling equation is understanding that your behaviour is no different from those consumers who refuse to buy based on price. They simply don't see enough value.

What happens when you discount?
What you think is the quickest and easiest way to close a sale today - based on a price objection - is probably the most damaging to your career over the long run. Not only will your customers consider every future deal with you based on cost, but they'll only be enticed by lower prices for so long: The buying pull of a “bargain” quickly wears off, and they're left thinking that their purchase is of a lower quality and value than that of your competitor.

If you resort to discounting, you limit your selling career to price, and what you really should be selling is value.

What's the difference?
Price is simply what you charge. Value is the sum total of all of the positive effects that the product or service will have on the buyer's business. Value is never the same as price - except on the day you close. That's when the buyer agrees on a cost relative to value.

Have you ever called one of your competitors, assumed a fake voice and asked, “How much do you charge?” Admit it. You all do that kind of nonsense. But here's the really daft part. Have you ever adjusted your selling price to match or beat theirs? What were you thinking? Oh yes, you were qualifying your product or service according to what others charge. Stop it immediately - you're not selling a commodity - you're selling value.

Establish value first
Every price is too high without an appreciation of value. Think about that for a while. If that's true, then so is this: Every price the customer offers, before they understand the value, is too low!

See in most cases, your offering has many benefits for the customer. Each of those has a corresponding value. Your job as a professional salesperson is:

1. To understand the customer's value system: Know your customer's business well enough to explain to them how your offering will improve their bottom line. This means asking more questions and doing more research before making your proposal.
2. To assess how they perceive the value of the product or service: Do you know the value of what you sell? It may not be what you think it is. Rather ask the customer what they see as valuable in your product or service.
3. To sell your product or service based on the customer's perceived value of it: Too often, we make our value propositions in a face-to-face discussion with the buyer. Include a summary of value that you and the buyer agreed upon in your quote.

Maintaining focus on value is important because buyers won't pay more for any product than they think it's worth. That said, it's good to know that buyers aren't just looking for a product or service with benefits - they're actually looking for value. And they want to understand the value you can deliver. It's when they become confused about value that they resort to price shopping.

How do you sell value?
The key to selling value is this: We don't determine the value of what we sell; our customers do. You can help your buyers discover the value within your offering, but you can't do it for them.

1. Ask: Instead of doing a dog and pony show for a prospect, find out their needs before spouting off a series of features and benefits they may not even need. Regard yourself as a consultant who happens to get paid when you sell something. To walk in and go through a chest-beating monologue doesn't cut it anymore. Maybe it's time to ask your customers "What makes us worth the money?" You may be surprised by what they tell you.
   
2. Make it easy: Once you've asked your customers what makes your product or service worth it, you'll get plenty of insights as to why they value doing business with you. Learn how to become a consultative partner by engaging your prospects in dialogue, like “Tell me about situations that have been a problem for you. How do you make your buying decisions? What are your criteria?” If their buying criteria fit what you have to offer, then determine the next steps together.
   
3. Share the value: Explain how other customers find value in your product, you'll make it easier for the buyer to get clear about where the value lies for them.
   
4. Sell after sales service: Don't just make the sale, also install the product, provide after sales service and follow up to check if the product is working correctly. Warranties and after sales services are incentives to want to buy. Call it value for money, if you like. No person wants to throw away dosh. A money back guarantee is a great way of saying: I trust my product, it is of high quality!

Translated into practical sales
In order to effectively illustrate value, you need to rethink the way you present your product or service. And it can be as simple as cutting out all the ‘we's' from your sales talk. Jeffrey Gitomer, the ultimate Salesman, shares his timeless wisdom in this regard.

“Does the customer care about you or themselves? Obvious answer. So why do you 'we-we' all over them? They don't care about you. UNLESS you can help them. The key to mastering any kind of sales is switching statements about you, how great you are, and what you do, to statements about them, and how great they are, and how they will produce more and profit more from ownership of your product or service. HERE'S THE SECRET: Take the word 'we' and delete it. Delete it from your slides, your literature, and ESPECIALLY from your sales presentation. You can use 'I' but you can't use 'we'. HERE'S THE POWER: When you stop using 'we', you have to substitute it for the word 'you' or 'they' and say things in terms of the customer. How they win, how they benefit, how they produce, how they profit, how they will be served, and how they have peace of mind.

"'We' is for selling. 'You' is for buying."

Here's the reality in plain English
1. The buyer, the prospect, and the customer expects you to have knowledge of their stuff, not just your stuff. To transfer that knowledge, the prospect needs to understand and agree with your ideas, feel your passion, feel your belief, and feel your sincerity beyond the hype of your sales pitch.
2. You have to know their industry, not just your product.
3. You have to know their business, not just your product.
4. You have to know what's new and what's next, not just your product.
5. You have to know the current trends, not just your product.
6. You have to know their marketing, not just your product.
7. You have to know their productivity, not just your product.
7.5 You have to know their profit, not just your product.

Assuming the buyer has a genuine need or strong desire, all you need to make a sale is:
1. Answers they need.
2. Ideas they benefit from.
3. How you differentiate from the others.
4. Value they perceive.
4.5 Trust they perceive as a result of all the other elements being in place.

I lost the sale because my price was too high
That's a lie. Erase this excuse from your repertoire immediately. The fact is, losing a sale is never, ever about price alone. There are many reasons why a customer will choose to not buy from you: product performance, poor track record, credibility issues, or any combination of these. If price was the main reason for losing a sale, it would be a lot easier to win by simply dropping it. The reality is that there are solutions customers will pay a premium for. Ultimately, they decide to buy from you because they believe you brought to the table something that has value to them; something that they can't get anywhere else.

What they said... and what they meant

• "Our budget was cut."
  Who were you talking to? A higher level decision maker may have been able to reserve a budget if your proposed solution is critical enough and carries enough value to their business.
  
• "We didn't need all the features; it was too expensive for what we need."
  Forget about extolling the many virtues of your product - focus on those specific benefits that are important to the customer and drive the sale from there.
  
• "Your solution doesn't give us everything we need to accomplish our objectives."
  You probably had the lowest price, but your product's or service's benefits didn't fit what the buyer is trying to accomplish.
  
  
  
  
  

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[2 Oct 2008 14:11]

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