Sell Value, Not Price

Aug 23
11:27

2008

Jerry Rouleau

Jerry Rouleau

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Understand, that not all customers buy on price. Some consumers start off asking about price, however, as you find out more about them, you will discover that they have other items that are important to them: items such as quality, warranty, reputation, brand name, and service.

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What is the biggest objection that sales people and customers have? In many cases,Sell Value, Not Price Articles they say, “the price is too high”. If the majority of the non-productive sales people had their way, they would get the company to lower their prices and then give a discount. For some reason, sales people feel that if the price is lower, it will be easier to sell. That is not the case. Every price is too high, if the consumer does not understand the value. Sales people, who sell the least expensive product, generally don’t stay in business very long. One reason is that the product is inferior. Secondly, they don’t make enough money to stay in business. The top sales people in any organization are generally not the individuals that sell the lowest priced product.

How can a customer really know what you are selling, if you don’t show them the value? If we don’t demonstrate our product, the consumer will come away with a preconceived notion, about what the product is worth. When value is shown up-front and how it benefits the customer, they start thinking that you are offering them a lot, for the money you are asking.

Understand, that not all customers buy on price. Some consumers start off asking about price, however, as you find out more about them, you will discover that they have other items that are important to them: items such as quality, warranty, reputation, brand name, and service. Take time to find out about your customer. It’s OK to ask about price early on. Find out what’s important to them in the purchase. If price is going to be the only consideration and they are not interested in quality, service, reputation, warranty and brand names, then maybe you are talking to the wrong person.

Have you ever used the term, “more is less”? Consider the following items: quality, warranty, reputation, brand name, and service. Why would these items be of importance? What are they worth? What is the long-term value of these items? Remember, the cheapest price is not always the least expensive. A consumer who buys a less expensive product than, might end up paying more in the long run. Either their price really didn’t include everything, or based on the quality, the customer will end up replacing items. 

In the first sentence of this article, I talked about the biggest objection sales people have. If price is a constant issue, then maybe the salesperson has the “hang-up” and is projecting the problem to the customer. It’s kind of hard to sell something that YOU are not sold on.

Let’s look at this, from a different viewpoint. If everyone was price conscious, we would all be driving the same inexpensive car, living in the smallest home we could find, eating at the least expensive fast- food chain and watching TV without cable or satellite dish. Take a look at the cars on the road, the homes you drive by and the expensive restaurants in your area. Everyone does not buy on price alone. Yes, I agree that some people do, but not everyone. Decide if your product is the least expensive option in your market area and if it is, than sell on price alone and forget everything else. If it’s not, you need to choose and select your customers and then start selling value.

Selling value is not about selling features and advantages. It’s about finding out about your customer, and what is important to them. Many of the value items that are incorporated in your product may not have the same importance to them as other people might have. Selling value is about understanding the customer first, finding out their needs, wants and desires. From there, it’s easy to pinpoint the items of importance.

What makes you unique as a salesperson? What makes your company different? Why is your product better? Find out what your USP (unique selling proposition) is. Sit down with your team and list all the things that make you different. Make sure you target the items that make your product, company and you, an advantage to the consumer. If you make your USP about the customer, you’ll find the sales process will go a lot smoother!