Commodity Hell or Value Heaven
The professional buyers of today are more knowledgeable about your market than sales people often are. Buyers know about your offer, like you, but they also know what your competitors are offering, because that is their job to know. Unfortunately, many sales people fail to invest time to learn about their competitors offers. The worst part is that Buyers know more about their needs than you…
This situation leads to professional sales people to struggle to explain ‘why’ they are more valuable compared to their competitors. The buyers are very aware about this and then take the position; ‘you´re all the same, until you can prove you´re different’.
This customer mindset often means they choose the supplier with the lowest price.
On the selling side it creates frustration and in the worst case, a lower price level.
Only the Sales person can decide through their actions go up to Value heaven, or down to Commodity hell… The Sales person’s credibility lies in the communication of measurable value to the buyer within one or many of these areas;
1. Can we increase customer´s revenue?
2. Can we decrease customer´s total cost of ownership?
3. Can we minimize customer´s capital requirements?
4. Can we reduce customer´s risk?
Just value is not enough. You need a measurable value or a reference that can support your value statement. Buyers must be influenced to alter their opinion and one efficient way is to use a process and this will be the path Value Heaven…
A ttention (use a statement that you know to be true, and signpost a solution)
B old the problem (Double check that this IS a problem for the buyer and get agreement)
C reate a simple solution (Show how your offer solves the problem)
D edicate to conviction (Trial close- is this of interest to you?)
E liminate resistance (Do you have any questions?)
F ix the decision (Agree a way forward)
If the client is satisfied with their current supplier then you need to make them aware about the potential weaknesses with Status Quo. When that is done, you can highlight the real problem and combine that with an efficient solution embedded with a measurable value.
Resistance to commitment is eliminated by getting the price point right, and communicating the buyers investment in terms of improved measurable value. If you bridge the simple solution to this phase of the process you will have automatically fixed the decision. Value heaven or commodity hell. It’s a simple choice…. So, sales people- figure out what questions you need answers to, before you start to present solutions!
Anders is the Founder and Managing Director of QualitySales and member of the Global Growth Group. He has delivered training, team events and Keynote speeches to over 20,000 people on topics such as Sales training, Business Development, Sales Management and Key Account Management. His result-orientated approach has enabled Andes to work with the most demanding and prestigious clients internationally and across several sectors.