The Equation: Perceived Buyer Value = Perceived Buyer Benefits over Price
One way to add value inside of this business equation is to buy a customer's business by offering the lowest Price. You already know that may get you a short-term sell at the expense of short-term and long-term profitability. But, there are more profitable ways to create Perceived Buyer Value, beyond under-cutting your competitor's price.
Improve the Perceived Buyer Benefits. To do this, you need to understand the aspects of your business that impact the buyer's perception of value. Adding significant value to your customers and to your organization will maximize the Perceived Buyer Benefits.
Two key areas of your business are your sales processes and sales interactions. Take a look at both of these areas and see how you can boost your value proposition and your profitability.
Sales Processes - We define sales processes as the multiple aspects of your "selling engine" that are institutional to your organization, such as:
· Comprehensive needs assessment
· Design
· Quotes
· Proposals
· Customer relationship management program
· Pipeline management program
· Solution implementation
These are processes that can be automated or standardized, and part of an integrated approach to drive higher levels of efficiency. And, it is the efficiency of these business functions that will add significant value to the numerator Perceived Buyer Benefits. Conversely, faulty or out-dated sales systems can create tremendous Price pressure due to the diminished Perceived Buyer Benefits.
Sales Interactions - Any time you directly engage your customer or prospect in communication (verbal or written) you are having an interaction. Some refer to these interactions as customer touch points.
Sales meetings, presentations, negotiation and follow-up communication have a tremendous impact on a customer's or prospect's perception of value. The effectiveness of these interactions will add significant value to the numerator Perceived Buyer Benefits, so you don't have to win business by offering the lowest price!
Once you take steps to improve the efficiency of your sales processes and the effectiveness of your sales interactions, you will improve the Perceived Buyer Value.
Perceived Buyer Benefits generate higher levels of Perceived Buyer Value, which in turn results in your company winning highly profitable business. Value over Price Preserves Profitability!
To preserve your margins, institute the right sales processes and sales interactions to profitably win highly complex and competitive business.
Value Over Price Preserves Profitability - To learn more about this author, visit Mike LeMaster's Website.
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Dave Turkin, President, of Accessible Business Consultants is a full service business consultant that has over 32 years of experience working with small-medium size businesses. Dave has designed and implemented numerous business and marketing plans, designed internal programs for accounting and operational procedures. He has analyzed businesses and prepared strategic plans setting budgets for growth, expansion and business restructuring.
He currently sits on the Board of Directors of various corporations as an advisor. For many years he has been the Business Coach to many executives offering advice and guidance from old and established companies as well as new companies just getting started.
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Mike LeMaster
(Visit Mike's Website)
Mike LeMaster, Revenue Coach, is President
and Founder of Sales Coaches
International, LLC. An innovator and
conceptual thinker, Mike has a Degree in
Economics from Denison University and
almost 30 years experience as a
strategist, coach, and leader to business
owners and other key decision makers. Mike
understands revenue acquisition to its
fullest and has a deep appreciation for
the value of institutional excellence. He
also knows the importance of designing and
implementing revenue-generation and
acceleration-supporting infrastructures
that drive immediate and sustainable
business results. Mike’s collaborative
approach is a winning formula that
identifies people, protocols, tools and
systems needed for businesses to achieve
full revenue potential. His vision,
experience, skills and abilities enabled
Mike to apply his concepts and strategies
to build a successful business of his own.
And, in doing so, has delivered on the
demands of business leaders who look to
achieve their own substantial business
growth. For more info, contact mikelemaster@salescoachesintl.com or visit www.sale
scoachesintl.com. Also, you can read
Mike’s Linkedin profile at
www.linkedin.com/in/revenuecoach.
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