How to sell based on value
Many successful companies companies have learned that selling based on value of our product or service is far more effective than trying to be the lowest price provider. But how do you do sell based on value rather than on price? This article will show you how.
Are you feeling the pressure from lower-priced suppliers? For many, sales are taking a nose dive. The reason for the drop in sales appears to be customers switching to low-priced competitors. I was talking to an executive from a major coffee supplier recently and I was told that even they were feeling the effects of the lower prices of suppliers from Indonesia eating into their market.
In his widely acclaimed book, “Marketing Insights from A to Z”, Philip Kotler says, “Today’s central problem facing business is not a shortage of goods but a shortage of customers. Most of the world’s industries can produce far more goods than the world’s consumers can buy.”
If you agree with Mr. Kotler’s observation, you can conclude that the pressure to push prices down will continue. The funny thing is that our costs do not go down; rather they seem to keep going up. So, what are you going to do? If you want to remain in business, you need to get better prices. Or do you?
Sales Tip #1 Narrow your market
The first thing to understand is that not everyone is your customer. Some people want the best value and others are required to treat their requirements as commodities and look for the lowest tag price. Some are required to turn your product or service in to a commodity and use a price matrix to select their provider. Do you really want to waste your time with customers like these?
The customer that you want sees your value and understands that you will be there to provide customer service exactly when they need it most. That’s why they are willing to pay the fair price you offered. Don’t waste your time talking to people who only want the cheapest deal.
Sales Tip #2 Focus on the Value of your product
How do we compete with the lower priced supplier? A universal truth that we can fall back on is that “you get what you pay for.” The competitor’s price may seem to be lower, but you have a superior product that will last longer, is more reliable and will save the client a lot of time and money in the long term. Now is the time to mention the advantages you bring to the table like local inventories, logistic support programs, maintenance programs and the many other benefits that only your organization can offer. You need to highlight why your product’s value is worth their consideration over lower-price options.
Sales Tip #3 Emphasize Your Customer Service
What is good customer service? Let’s get past the behavioral part of customer service and talk about what your customers really want to get from their vendors.
A good example is to compare talking to a travel consultant versus buying tour packages online. Hands down, the winner of course is online purchasing. The airlines and the hotels have cut out the middle man and are offering the lowest prices online. Many travel agencies who are still following the traditional way of selling are on the brink of going bust. How do you survive in a market where the online price leaves you with no margin?
Now, let’s try something different. Let’s ask the computer if the hotel is near a church, if there is a nice reasonably priced restaurant nearby or even ask something as simple as if the rooms smell nice. Are you likely to get an answer you can trust? Are you going to bet your family’s holiday on the advertising blurb on a website? Or, are you going to call your trusted travel consultant to give you the full details. The travel consultant may charge a bit more, but she has inspected the resort you are interested in and can give you plenty of expert advice on how to get your money’s worth for your holiday budget.
So, in the end where do you get the better value? Online or from a live consultant?
Sales Tip #4 Provide the solutions your customers are willing to pay for
The toughest job in selling is to get the customer to appreciate the value of the customer service they are getting. Focus on your personal insights, add a few personal touches and build the trust and rapport with your client. Get to know their real needs and provide the solutions they are willing to pay for.
Sales Tip #5 Give your Staff the right Sales Training
Good sales people are the result of good training and excellent sales management. Your staff can certainly improve regardless of the level they are at today. Good sales people are like razors, they need to honed and sharpened regularly. otherwise, they become dull and their performance declines. Give them the training that they need to remain sharp and productive.
How to avail of this Seminar
This training is available as a 1 day in-house (at your premises) seminar. More training days can added (we recommend a maximum of four days) for a complete training program custom fitted to your needs and can include coaching and practice sessions. Contact us so we can discuss the best program to suit your needs.
Upcoming Sales, Marketing and Customer Service Seminars
About the Author
Rafael M. Pefianco is a highly trained Mechanical Engineer. He has managed chain of stores, warehouses and distribution businesses for many years. He has extensive experience in marketing and sales. He is an International Trainer whose passion is to enable Filipino professionals to reach world class levels by sharing the insights he has gathered working and teaching abroad and in the Philippines. He is a Master Project Manager and a Fellow of the American Academy of Project Management. Please click [Background of Raffy Pefianco] to read more about him.
Comments are closed