Written by Sean McPheat |
29 November, 2017
How many times do your clients talk about you reducing your prices?
What do you say when the issue of price is brought up by the prospect?
In which direction do you take the conversation when price is the biggest stumbling block?
For most salespeople, price is the biggest objection they have to overcome, and they do it by justifying the price-tag and comparing it against competitors or increasing the benefits of the product through its improved features.
While this may have an effect in some cases, the real emphasis should be put on value, not price.
What exactly is value in the client’s eyes, and how can you uncover the key drivers that increase this value?
The book “The Discipline of Market Leaders (Treacy and Wiersema) covers three components that will increase the value of what you can offer to your clients.
These three drivers should be built on so you can identify what really is important to your client.
The first driver is ‘Operational Excellence’.
This refers to the way the company does business.
Many companies want to prove themselves in the market place through processes, conformance, safety aspects or production schedules.
Operational excellence increases value in a customer’s eyes because they look good to their customers in the way they do business.
For these types of customers, you need to consider how you improve their business through the value you offer to their operations.
Do your products or services help them to build improved performance?
Are your solutions able to make their processes better than their competitors?
If so, the value you offer on an operational basis could be more important than the up-front price.
The second driver is ‘Product Leadership’, meaning the leading-edge, market-dominant product or service.
With this driver, companies who innovate and create systems and products help their customers to achieve results through assisting them build new clientele and enter new markets.
As you convince your prospect that your products and services will be of real benefit to them, the value of what you offer will correspondingly increase.
The third driver is ‘Closeness To The Customer’.
This value-driver is all about deciding on the specific needs and desires of a company and considering what and how those needs can be assessed.
For some clients, this relationship is more important than prices and always will be.
The way to highlight this value is to help their business’s market and become so close to the buyer’s decision-making process that your relationship drives many decisions that will increase value in their eyes.
These three value-drivers increase the significance of the long-term focus on your products, rather than just focusing on the price.
They give added reasons and rationale to the buyer to make the decision to purchase.
If you can put the emphasis on one or more of these drivers, there is an increased chance of creating value in companies’ eyes that the value they will receive from your products far outweigh the initial price they will pay.