Have Your Clients Calculate Your Value During the Sales Process

If you and your company are trying to sell value, you must clearly and authentically calculate the value that your products and services provide…not just in your opinion but in the eyes of your customer.

Average sales reps “tell” their clients the value that they provide and then try to sell their clients on the need to buy. In sales, “telling and selling” often decreases trust and feels “cheesy.” High performing value selling sales reps, on the other hand, consult with their clients and co-create the value that their products and services deliver.

For example, a recent client wanted to increase the sales presentation skills of their top 200 sales people. Before discussing price, we had the client calculate the value by the numbers as follows:

1. What is the average deal size of your top 200 sales people? $750,000
   
   
2. How many sales presentations do they do per year? 20 per sales rep
   
   
3. What percent do they convert now? 25%
   
   
4. If they significantly improved their sales presentation skills, what percent do you think they would close? 50%
   
   
5. What if they marginally improved? 30%
   
   
6. So with an average deal size of $750,000 and closing 10% to 35% more deals, the additional revenue would be????

The client calculated marginal improvement at $750,000 [(20 meetings)*(5% more) = 1 additional deal at $750,000 each] and significant improvement at $3.75m [(20 meetings)*(25% more) = 5 additional deals at $750,000 each].

Therefore the value of the solution is equal to between $750,000 and $3.75m of additional revenue per sales rep and should be priced, designed, and positioned accordingly.

You will gain a lot more credibility and be far closer to a deal at your price if you lead your clients through the process of calculating your solution’s value together rather than simply presenting it.