VALUE-BASED SELLING

The common misconception that lower prices sell more products has often prevented sales people from focusing on those to whom price is only part of the purchasing equation.

While there will always be those who make their purchasing decisions primarily on price, there are many more who factor in a lot of other things.

One of those things is value. Here’s an example. I have a friend who has never ever made a buying decision on price alone. In fact, he is happy to pay more if he feels he is getting better quality, better service, or a better warranty.

While it often takes him longer to make a purchasing decisions because he does his homework, he is also often more than not, happy with the decisions he makes, and he is twice as likely to buy from the same person or company again. Here’s how you can tap into an area of selling that takes you to a whole new level.

For some people, anything but the rock bottom price is too high and quality is less important than how many dollars they spend. If you have got one of those customers, there’s not much you can do except direct them someplace where they can find those rock bottom prices, making sure you let them know they may well be sacrificing value for price.

It’s up to them to make that decision. But for most people, value is more important than price. A pair of shoes that cost $10 and last for two months are not the same value as a pair that cost $60 that last for four years.

Your job as a sales person is to get your customers to look beyond price and to see value they are getting for their dollar.

To determine the best value of your product or service, don’t think about features, think about how it ultimately benefits the customer. For example, say you are selling database software. You can spend all day telling your client about the things it can do, all the features it has and how well it works, but if you can convince them it will save them three hours of data processing every day – you are talking value !

Or if you are selling service contracts for computers, don’t only inform them about your technical knowledge and expertise, and what types of problems you can fix, and how you are always available. Convince them of the benefit of eliminating worry and stress.

No matter what happens or when, you’ll be on their doorstep within an hour. Now you are talking value !

Expect objections, and deal with them squarely. If you appear to be hedging issues or beating around the bush, the value of your product or service will be suspect. People have questions. The more honestly you can deal with those objections, the closer you are to getting that sale.

Objections often come from those who need to be convinced of value. Listen to what’s beneath the surface. What are they really saying ? What do they really need and, what do they value ?

How can your product or service address those needs ? Use objections to get information, and use that information to add value.

Let’s say you have started by offering a service at a specific price but your customer is not convinced. If you can offer additional things that add value to the package, but don’t cost you a lot more, you are on the road to making the sale, because you have increased the value of what they are buying.

For example, a graphic designer sets a price for designing a brochure for a client. The client has never hired a designer before, and thinks the price is high. The deigner explains everything involved in designing a brochure to try and show the value of the service. The client is still not sure.

Then the designer offers to not only design the brochure but also throws in a free business card design, as well as managing the printing process. The client feels he is getting a great deal because of the business card, and since he has no knowledge of graphic design, feels confident that the printing will be done well because of the designer’s expertise.

The designer wins because once the brochure is designed, he can copy elements of the brochure into the business card so it takes very little time to do the extra task. And because he has offered to manage the printing, he can go to the printer he prefers which also saves time. By adding value to the service, the designer won over the customer.　

People make buying decisions based on a multitude of factors, but because they base repeat buying primarily on their satisfaction with what they originally purchased. Use your integrity as part of the value of the package.

Always be fair and honest with your customers. Deliver on time. Do what you say your are going to do. Follow up when you say you will. Go above and beyond what has been asked of you. Take responsibility for your mistakes and make it right.

If you do this, your integrity becomes a major factor in their purchasing decisions in the future. If you are someone who always comes through for your customers, they will come back to you – even if your prices are higher than someone else’s – time and time again.