Selling Value Over Price
Selling Value Over Price
by John L. Naples, CSP
How to Sell Value Over Price
When I first started playing the selling game, I thought selling was all about “the deal”. In fact, I was even taught to use the “what’s it going to take” closing technique to close the deal. While these closing gimmicks might work if you’re selling used cars or timeshares, they don’t serve the professional, value-centered salesperson well.
Let’s face it, selling on price is easy. Anyone can lower their price. We’ve all been tempted to reduce our price to win business. In fact, it’s a natural response when a buyer says, “Your price is too high.” We often cower at the sound of those hideous words.
Value-centered salespeople proactively look for ways to create meaningful value and significant impact for their customers. They build value on the front-end so that price is less of an issue on the back-end. Value-centered selling is everything you communicate before price becomes an issue.
Being value-centered begins with a thorough understanding of your customer’s needs and wants. Without diagnostics, it’s impossible to prescribe value. The diagnostic function of selling value includes gaining an understanding of your customer’s business, challenge areas (pains), culture, and business objectives for the future. It also means asking high-yield, open-ended questions to flush these things out.
Here are some practical tactics on how to sell on value versus price.
1. Develop Greater Confidence. Selling on value requires confidence in both your offer and yourself. If you’re uncertain about the validity of your claims and the benefits of your offer, selling on value will be tough.
Your inner confidence comes from a strong self-esteem. To sell on value, you need a healthy picture of yourself. To build your self-esteem, spend time with winners, read books that nourish your soul, focus on spiritual growth and celebrate your victories. If you do this, you’ll have a greater sense of courage, assertiveness, persistence, and creativity.
2. Understand and Demonstrate Your USP (Unique Selling Proposition). Your USP is your DNA in the marketplace; it’s what makes your organization unique. This begins with three things:
• A thorough understanding of your USP. This goes beyond simple product knowledge. You must know HOW your offer impacts your customer’s business and/or life, what need your offer fills and what problem it solves.
• Know what differentiates you from your competitors. How are you better than your competition? Your ability to set yourself apart, particularly in the beginning of the sales process, will give you an edge over your competitors. Ask yourself, “What are some distinct ways we can differentiate ourselves in our marketplace?” Avoid commoditizing yourself by looking like everyone else. Think of ways to stand out!
• Convey the benefits of your offer in a clear, concise manner. The best response you can give when someone says, “Your price is too high”, is to simply ask them, “Can I share with you a few reasons our proposal has more value?” Try to get your customer focused on the value and benefits of your offer.
3. Avoid Becoming Part of the Problem. A recent Harvard University study revealed that buyers want more than a “cheap price”. In fact, only 1 out of 6 buyers are true price shoppers. The study also showed that most price objections that salespeople encounter are self-inflicted; meaning salespeople are more concerned about price than customers. In fact, buyers rated price 7.2 (on a 10-point scale), while salespeople rated it price 8.3. Who’s making the bigger deal about the selling price?
4. Sell the Quantitative Benefits of Your Offer. There are a number of things more important than price. Identify what those things are and sell them hard! Here’s a short-list of possible value-added benefits you can sell:
• Quality
• Service & Support
• Financial Impact (ROI)
• Your Knowledge and Expertise
• Peace of Mind
• Ease of Doing Business
• Product Performance
What would these benefits be worth to your customers? You can determine their value by listening to your customers and discovering their emotional agenda.
5. Realize the Dangers of Slashing Your Prices. When you slash your prices, some customers will perceive it as your admission that your prices were too high all along and that you’ve been gouging them. You’re also setting a dangerous precedent by telling buyers that lower prices are possible. They may delay their buying decision just to see how low your prices can go.
Cutting prices also may give your customer the impression that your organization, team members and products are inferior. From a financial standpoint, price cutting can also mean lower margins, revenue and profit. Some companies have a “no discount” policy. They simply don’t reduce prices – ever. These mavericks have learned how to sell value.
6. Apply the Attributes of a Value-Centered Salesperson. To sell value over price, here are a few of the essential attributes you must possess:
• Become a strategic thinker and planner.
• Learn what your customer values.
• Initiate contact with high-level decision makers.
• Identify buyer needs and priorities.
• Penetrate accounts thoroughly, at all levels, to generate support and build consensus.
• Brainstorm to create a tailored solution to the buyer’s needs.
• Convey the value of the total solution.
7. Sell Value During All Phases of the Selling Process. When you’re trying to penetrate a new account, it’s easy to sell on value. For example, you could say, “We have a number of new products that will simplify your shipping process and lower your costs. I would like to meet with you for 20 minutes and show you how. How does next Tuesday sound?”
When you meet the buyer, you’re professional, you arrive early, make a strong first impression and work to develop trust.
During the diagnostic phase, you’re selling value by conducting your interview like a consultant. You’re listening intently and taking notes.
When you’re presenting, you’re addressing your buyer’s needs, differentiating yourself, selling your unique value proposition and the real value of your offer. You’re selling things like quality, service, excellence, your knowledge, and peace-of-mind.
During the final stages of the sale, you’re inviting the buyer to take the next step in a professional, non-threatening manner. You’re addressing the concerns and objections by giving them assurance. Your follow-through is impeccable and timely.
Selling on value is a mindset. It starts with your self-concept. Begin to see yourself as a value-adder. Gain a thorough understanding of what makes your firm unique and how you’re better than your competition. Don’t be afraid to tell your customer, “I think we have some unique advantages that will help you improve customer service, increase sales revenue and improve efficiency.”
Be proud of your price and avoid becoming part of the price problem. Sell the value added benefits such as financial impact, product performance and support. Realize the dangers in slashing your prices and sell value all the time.
Becoming a value-centered sales professional doesn’t happen overnight. It requires a change in philosophy and approach. As you begin to see yourself as a value-centered salesperson, make it your goal to become a strategic thinker and to learn what your customer values. Over time, as you apply these tactics, you’ll see increased sales and more consistent sales results.
Selling Value Over Price - To learn more about this author, visit John Naples's Website.
Like this article? Share it with your friends
Value-Centered Selling
by John L. Naples, CSP
How to Sell Value Over Price
When I first started playing the selling game, I thought selling was all about “the deal”. In fact, I was even taught to use the “what’s it going to take” closing technique to close the deal. While these closing gimmicks might work if you’re selling used cars or timeshares, they don’t serve the professional, value-centered salesperson well.
Let’s face it, selling on price is easy. Anyone can lower their price. We’ve all been tempted to reduce our price to win business. In fact, it’s a natural response when a buyer says, “Your price is too high.” We often cower at the sound of those hideous words.
Value-centered salespeople proactively look for ways to create meaningful value and significant impact for their customers. They build value on the front-end so that price is less of an issue on the back-end. Value-centered selling is everything you communicate before price becomes an issue.
Being value-centered begins with a thorough understanding of your customer’s needs and wants. Without diagnostics, it’s impossible to prescribe value. The diagnostic function of selling value includes gaining an understanding of your customer’s business, challenge areas (pains), culture, and business objectives for the future. It also means asking high-yield, open-ended questions to flush these things out.
Here are some practical tactics on how to sell on value versus price.
1. Develop Greater Confidence. Selling on value requires confidence in both your offer and yourself. If you’re uncertain about the validity of your claims and the benefits of your offer, selling on value will be tough.
Your inner confidence comes from a strong self-esteem. To sell on value, you need a healthy picture of yourself. To build your self-esteem, spend time with winners, read books that nourish your soul, focus on spiritual growth and celebrate your victories. If you do this, you’ll have a greater sense of courage, assertiveness, persistence, and creativity.
2. Understand and Demonstrate Your USP (Unique Selling Proposition). Your USP is your DNA in the marketplace; it’s what makes your organization unique. This begins with three things:
• A thorough understanding of your USP. This goes beyond simple product knowledge. You must know HOW your offer impacts your customer’s business and/or life, what need your offer fills and what problem it solves.
• Know what differentiates you from your competitors. How are you better than your competition? Your ability to set yourself apart, particularly in the beginning of the sales process, will give you an edge over your competitors. Ask yourself, “What are some distinct ways we can differentiate ourselves in our marketplace?” Avoid commoditizing yourself by looking like everyone else. Think of ways to stand out!
• Convey the benefits of your offer in a clear, concise manner. The best response you can give when someone says, “Your price is too high”, is to simply ask them, “Can I share with you a few reasons our proposal has more value?” Try to get your customer focused on the value and benefits of your offer.
3. Avoid Becoming Part of the Problem. A recent Harvard University study revealed that buyers want more than a “cheap price”. In fact, only 1 out of 6 buyers are true price shoppers. The study also showed that most price objections that salespeople encounter are self-inflicted; meaning salespeople are more concerned about price than customers. In fact, buyers rated price 7.2 (on a 10-point scale), while salespeople rated it price 8.3. Who’s making the bigger deal about the selling price?
4. Sell the Quantitative Benefits of Your Offer. There are a number of things more important than price. Identify what those things are and sell them hard! Here’s a short-list of possible value-added benefits you can sell:
• Quality
• Service & Support
• Financial Impact (ROI)
• Your Knowledge and Expertise
• Peace of Mind
• Ease of Doing Business
• Product Performance
What would these benefits be worth to your customers? You can determine their value by listening to your customers and discovering their emotional agenda.
5. Realize the Dangers of Slashing Your Prices. When you slash your prices, some customers will perceive it as your admission that your prices were too high all along and that you’ve been gouging them. You’re also setting a dangerous precedent by telling buyers that lower prices are possible. They may delay their buying decision just to see how low your prices can go.
Cutting prices also may give your customer the impression that your organization, team members and products are inferior. From a financial standpoint, price cutting can also mean lower margins, revenue and profit. Some companies have a “no discount” policy. They simply don’t reduce prices – ever. These mavericks have learned how to sell value.
6. Apply the Attributes of a Value-Centered Salesperson. To sell value over price, here are a few of the essential attributes you must possess:
• Become a strategic thinker and planner.
• Learn what your customer values.
• Initiate contact with high-level decision makers.
• Identify buyer needs and priorities.
• Penetrate accounts thoroughly, at all levels, to generate support and build consensus.
• Brainstorm to create a tailored solution to the buyer’s needs.
• Convey the value of the total solution.
7. Sell Value During All Phases of the Selling Process. When you’re trying to penetrate a new account, it’s easy to sell on value. For example, you could say, “We have a number of new products that will simplify your shipping process and lower your costs. I would like to meet with you for 20 minutes and show you how. How does next Tuesday sound?”
When you meet the buyer, you’re professional, you arrive early, make a strong first impression and work to develop trust.
During the diagnostic phase, you’re selling value by conducting your interview like a consultant. You’re listening intently and taking notes.
When you’re presenting, you’re addressing your buyer’s needs, differentiating yourself, selling your unique value proposition and the real value of your offer. You’re selling things like quality, service, excellence, your knowledge, and peace-of-mind.
During the final stages of the sale, you’re inviting the buyer to take the next step in a professional, non-threatening manner. You’re addressing the concerns and objections by giving them assurance. Your follow-through is impeccable and timely.
Selling on value is a mindset. It starts with your self-concept. Begin to see yourself as a value-adder. Gain a thorough understanding of what makes your firm unique and how you’re better than your competition. Don’t be afraid to tell your customer, “I think we have some unique advantages that will help you improve customer service, increase sales revenue and improve efficiency.”
Be proud of your price and avoid becoming part of the price problem. Sell the value added benefits such as financial impact, product performance and support. Realize the dangers in slashing your prices and sell value all the time.
Becoming a value-centered sales professional doesn’t happen overnight. It requires a change in philosophy and approach. As you begin to see yourself as a value-centered salesperson, make it your goal to become a strategic thinker and to learn what your customer values. Over time, as you apply these tactics, you’ll see increased sales and more consistent sales results.
Selling Value Over Price - To learn more about this author, visit John Naples's Website.
Like this article? Share it with your friends
 | |
 |
No article feedback found. |
| |
Leave Your Feedback |
 | |
| |||
Dave KurlanDave Kurlan is the founder and CEO of Objective Management Group, Inc., the industry leader in sales assessments and sales force evaluations, and the CEO of David Kurlan & Associates, Inc., a consulting firm specializing in sales force development. Dave has been a top rated speaker at Inc. Magazine's Conference on Growing the Company, the Sales & Marketing Management Conference and the Gazelles Sales & Marketing Summit. He has been featured on radio and TV, including World Business Review with General Norman Schwarzkopf, in Inc. Magazine, Selling Power Magazine, Sales & Marketing Management Magazine and Incentive Magazine. He is the author of Mindless Selling and Baseline Selling – How to Become a Sales Superstar by Using What You Already Know about the Game of Baseball. He created and wrote STAR, a proprietary recruiting process for hiring great salespeople, and he writes Understanding the Sales Force, a popular business Blog and is a contributing author to The Death of 20th Century Selling and 101 Great Ways to Improve Your Life, Volume 2. - Visit Dave Kurlan's Website |
|||
Linda RichardsonLinda Richardson is the Founder and Executive Chairwoman of Richardson, a global sales training and performance improvement company. As a recognized leader in the industry, she has won the coveted Stevie Award for Lifetime Achievement in Sales Excellence and she was identified by Training Industry, Inc. as one of the “Top 20 Most Influential Training Professionals.” Ms. Richardson is credited with the movement to Consultative Selling and is the author of ten books on selling and sales management, including Sales Coaching — Making the Great Leap from Sales Manager to Sales Coach, and Stop Telling, Start Selling. She teaches sales and management at the Wharton Graduate School of the University of Pennsylvania and the Wharton Executive Development Center. Linda is a frequent speaker at industry and client conferences, has been published extensively in industry and training journals, and has been featured in numerous publications, including The Wall Street Journal, Forbes, Nation’s Business, Selling Power, Success, and The Conference Board Magazine. Learn more about Richardson's sales training and performance improvement solutions at http://www.richardson.com web - Visit Linda Richardson's Website |
|||
George LudwigGeorge Ludwig is a recognized authority on sales strategy and peak performance psychology. An international speaker, trainer, and corporate consultant, he helps clients like Johnson & Johnson, Abbott Laboratories, Northwestern Mutual, CIGNA, and numerous others improve sales force effectiveness and performance. Though it's George's strategies and processes that help corporations increase productivity and performance, it's his tremendous energy and dynamism that spark the transformation. Again and again, clients remark on his amazing ability to unleash human capacity and inspire men and women to break out of their comfort zones. The result is a whole new type of salesperson. His customized presentations teach achievers to make stunning advances in their lives. From helping salespeople realize cherished dreams to helping corporations exponentially accelerate revenue streams, George Ludwig leaves audiences and individuals empowered, emboldened, and clamoring for more. George is the best-selling author of Power Selling: Seven Strategies for Cracking the Sales Code and Wise Moves: 60 Quick Tips to Improve Your Position in Life & Business. - Visit George Ludwig's Website |
|||
John PowerJohn Power, founder of Biltmore Franchise Consulting, has extensive experience developing and marketing franchises and business opportunities. He has been in and around franchising for over twenty years. From 1980 through 1990 he conceptualized, organized, and developed the American Video Association. He grew AVA to 2,000 national members, before selling the company it 1990. It was later merged into another home video marketing company. From 2000 to 2005 he worked as a contract marketing and human resources consultant to several local and national companies. In 2005 Mr. Power began working as a franchise development consultant on a full-time basis. Since that time he has helped more than three dozen companies initiate and develop their franchising program. He notes that there are many companies interested in developing a franchise program, and who need his specialized assistance. Mr. Power is a “hands-on” franchise consultant. He said, “I am the ‘nuts and bolts’ person who tends to the details for my clients.” Mr. Power holds a B.S. degree with a major in Marketing. See: www.biltmorefranchise.com You may contact Mr. Power at: jpower@biltmorefranchise.co - Visit John Power's Website |
|||
Staging DivaDebra Gould, aka The Staging Diva®, is President of Six Elements Inc., an internationally recognized home staging company. Inspired by many requests from aspiring home stagers wanting to start similar businesses, Gould created the Staging Diva Home Staging Business Training Program. Gould has trained over 1000 Staging Diva Graduates worldwide to start staging businesses. Buying decorating and selling six of her own homes in four years lead to an interest in real estate staging which she turned into a career with the launch of sixelements.com in 2002. Since then she has staged hundreds of homes in addition to teaching home staging training. Gould is the author of several home staging resources including a series of popular ebooks made up of a Design Guide, Color Guide and Portfolio Guide. For more information about Debra Gould visit stagingdiva.com. - Visit Staging Diva's Website |
|||
Jay Kubassek(Jay's Full Bio: EvanCarmichael.com/jaykubassek) In five years, Canadian-born entrepreneur Jay Kubassek went from selling mufflers at a Midas franchise to revolutionizing Internet marketing with the 2004 launch of CarbonCopyPRO, a online marketing education company, now worth over $20 million with customers in over 160 countries.
As an independent film producer, his upstart film fund Aliquot Films is currently producing a films with Spike Lee and Abel Fererra (starring Ethan Hawke and Dennis Hopper.)
Jay's entrepreneurial spirit is irrepressible. He’s the owner of five companies, a professional speaker and trainer, international real estate developer/investor, extreme sport enthusiast and emerging philanthropist. Jay resides in NYC with his wife Jamie, son Milo and dog Cooper. Visit Jay's official website: www.JayKubassek.com - Visit Jay Kubassek's Website |
|||
|
To learn more about the Evan Elite Author Program please contact us. | |||
 | |
|  |
Subscribe to John's articles
 | |
|
|  |
 | |
|
| |
 | |||||||
|
 | ||
 |
||
 |
||
 |
||
|
| ||
 |
| Have you written articles that would be of value to entrepreneurs? Become an expert on our site by publishing them! Expose yourself to a wide audience, drive more traffic to your website and get more sales! Click Here for details. |
|
|
 |
| Modeling the Masters: Learn the true secrets behind Walt Disney's business success factors & grow your company! Video produced by Phanta Media |
|
|
 |
"Learn straight from Evan how you can Make a Full Time Income (And More) from a Website"
Click Here To Learn More |
|
|
|
|
Get advice & tips from famous business owners, new articles by entrepreneur experts, my latest website updates, & special sneak peaks at what's to come!
|
|
|
 How Search Engines Work Joint Ventures ebook Marketing Effectiveness Instant Press Release SEO Today |
|
 | ||
 |
The Top 10 ProBlogger Posts
Best Posts for Bloggers | |
 |
Top 50 Business Plans
Top Business Plan Blogs | |
| ||
 | ||||
| ||||
|
| ||||
| ||||
|
|
|
|
|
||||||||||||
|
Email us your ideas on how to make our website more valuable! Thank you Sharon from Toronto Salsa Lessons / Classes for your suggestions to make the newsletter look like the website and profile younger entrepreneurs like Jennifer Lopez and Sean Combs!
|
|
|
| ||||||||||
|
| ||||||||||
|
|
||||||||||