Tweet

C-Level Sales Training Tip 21- Eliminate Low Price by Differentiating

Guest post by: Sam Manfer

Article Overview: Price battles happen because the C-Level decision maker doesn’t see a reason to pay more. Learn how to show differentiation where it counts and eliminate the low price argument.

C-Level Sales Training Tip 21- Eliminate Low Price by Differentiating

Your presentation requires two key components to win. The first is to show your prospect you can give him or her what s/he wants. The second is to describe how you can do it better than any alternative. Better in an area of importance to someone is worth more money. Keep in mind, doing nothing is an alternative and many times, your biggest competitor. Showing you're the best of the choices available is called differentiation. You separate yourself, your company and/or your solution from the others.

Many sales people struggle with differentiation. They feel their widget is basically like the competitors'. With services, they feel the customer can do it just as well themselves. But every company has uniqueness which should be used as differentiators.

For example your company has you. Yes, your competitors have their sales people, but they don't have you. That's unique. Your company has done 12 installations similar to this one. 3 have been in the same city, and 2 have been in the same industry. Your competitor may have done some, maybe more, maybe less, but does not have your numbers. The lesson from this example is to quantify. That sets you apart.

Quantifying is like painting a colorful picture. Numbers are vivid and believable. People relate to numbers. Numbers instill a feeling of competence. Feelings are how people eventually decide.

What sound better? "We've done 22 projects similar to yours." or "We've done many of these projects." The first has color, and the second is grey. People remember color and can visualize it. So when it comes to the final decision, the key decision maker will say, "I don't know why, but I just feel better about the company that has done 22 installations."

Therefore differentiating is easy. Just describe with numbers what you have. That's all.

Now will your competitors' quantify? Maybe, but even if they do, their numbers will be different and the level of detail they go into with their numbers will be different --the deeper the level, the more colorful and believable.

In any event your focus should be what you have, and not worry what competitors are going to present. Closing is all about winning over the final decision maker, not beating the competition. Selling is like an election - winning votes. It's not a sporting event where you beat the other team. If you focus on winning votes, you'll act differently than if you concentrate on beating competitors.

Quantifying works, but you must limit it to the features that the prospect wants to hear about. There is nothing worse than rambling on with numbers in an area the prospect doesn't care about. And be careful. Just because you think s/he should care, it doesn't mean s/he does. That's why your interviewing has to be comprehensive. You're prospects have to tell you all they care about and want. So, be detailed and specific - only about the features and benefits s/he values. Your value proposition has to be quantitative and focus on what your prospect values.

Common Situation

One Presentation Fits All

Sales people tend to go into their canned presentations. Sometimes they don't find out what's important to this person, and sometimes, no matter what the person has said, they still do the standard script. These same sales people also try to impose what they feel should be important to the other person.

Sales people tend not to quantify and fail to show how extremely capable their company is in areas of importance to the prospect. Actually many sales people get tired of their presentations because they do it so often and skim over the important details.

Many sales people really don't know what the prospect wants because they haven't had an in-depth interview, or they think everybody wants the same things. So they just present what they feel they should. The presentation becomes a commercial from a "sales person", rather than an offering of problem solving options from an expert consultant.

Resulting Problem

The Stage Is Set for a Price Battle or for Your Competition to Win

You talk and sound like everyone else. If there is no difference, they buyer will buy based on price. If your information does not address each person's personal issues, desires and/or concerns your credibility dwindles quickly. The executive especially feels you don't understand her situation so she excuses herself and seeks a competitive alternative.

Check Yourself

Score: 4=Always; 3=Most Times; 2=Usually; 1=Sometimes; 0=Never.

1. Do you check to see if you really understand what this individual wants before you present? ____

2. Do you tend to use general marketing materials and verbiage when describing your company, products and/or services? ____

3. Do you research your company to get specifics on everything you will present to your executive or how you've done something similar for others? ____

4. Do you try to set your presentation for groups of people? ____

Scoring: 2 + 4 - 1 - 3 = ??

Negative is good; Positive suggest learning to present differently

Related Articles
  The 8020 Rule Fallacy In Sales
  Handling The Price Objection
  Sales Training Tip - Most Sales Come Down to Price - Right?
  Selling on Price
  Game 7 - There is No Tomorrow with These Sales Opportunities
  Don\'t aspire to be the cheapest.
  Game 7 - There is No Tomorrow with This Sales Opportunity
  Handling Price Objections Should Not Mean Price Reduction
  Does Your Sales Team Use Needs-Based Selling Techiques?
  YOUR PRODUCT COSTS TOO MUCH!
  SELLING...Differentiate Yourself
  Designing your trade show display through your customer's eyes
  The Price Objection
  Sales Training Materials that Work!
  Sales Training - short term or long term success?
  Is Your Sales Training Missing These Ingredients?
  The Powerful Sales Person
  People Still Love to Negotiate
  Sales Peoples' Biggest Weakness – C-Level Selling
  Lose the Jargon: “What do you do?”

Article Tags: bidding, Differentiating, pricing, sales training, selling



Related Forum Posts
7 words or less for Structogram - Some "7 words or less" (more or less) for Structogram for your comments: Training to get your message across(6) Secrets to get your message across (6) Training so people will listen to you (7) Helping you get your message across (6) Training to learn to get your message across (8) Communications training for yourself and your team (7)
Online Sales and Marketing vs Traditional - Hi Evan, I am noticing that many of the posts in the Sales/Marketing section deal with online marketing, SEM and and SEO and Affiliates. I was wondering if it might be a good idea to separate that section into two; 1) Online Sales and Marketing; 2) Traditional Sales and Marketing
Re: The 3 Factors That are Limiting Your Productivity - Eliminate... automate... delegate... Good stuff. Another video for my blog!
Re: Online Sales and Marketing vs Traditional - [quote="ltrahan":31w9r2iz]Hi Evan, I am noticing that many of the posts in the Sales/Marketing section deal with online marketing, SEM and and SEO and Affiliates. I was wondering if it might be a good idea to separate that section into two; 1) Online Sales and Marketing; 2) Traditional Sales and Marketing[/quote:31w9r2iz] I second the request...
Re: How Not To Start A New Business - Well, these guys these guys will not succeed at all. they need to have a way of doing things. First thing first, which market segment are they targeting? Or are they in the same segment the previous magazine was. They also need to understand the trends, currently people read online magazines so they need a website. After that they need to develop the marketing mix, which will guide them in their marketing activities. This marketing mix will be made of 4 Ps, which are Product, Place,Price and Promotion. I will assume the magazine is the product, the first P, The Price is what is the role the price will play in the market, do they want premium price, or do they want to skim the market. The other P, they need to have, is the Place, this will help in having a strategy on where to place their magazines, this includes the websites, malls, newspaper stands etc. The final P they need to develop is the Promotion, this is the advertising , channels, websites, forums, blogs, name it. Once they have done that, they can sit down and wait for money to come but not without superior customer service, otherwise without all this, they are wasting their time and money.


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

The Basics Of A Home Based Internet Business

How do you keep it together on a daily basis?

How to Find a Niche and Make Money Online

Suggestions

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.