How do you define “value” in a selling situation?
Is It All About Price?
Some value selling experts maintain that price and value are just different words for the same thing. They claim that the “value” of a solution is always ultimately defined by price: either providing more services for the same price as a competitor or charging less for the same services as the competition. But we think that perspective is too narrow.
We see value selling as quite different from selling with cost as the defining measure. Rather than focusing on cost, sell value by focusing on what makes your solution unique in the eyes of your buyer…what differentiates it from the available alternatives. This is what gives value selling its edge and what gives you success in a competitive marketplace with complex sales.
A simple example would be selling your services as a residential architect. Once you have a thorough understanding of what your customer wants and needs, you go back to the drawing board to put together your plan. Topmost in your proposed design needs to be what matters most to your client. There are many factors to consider…size, house style, room plan, construction materials, placement on the property, landscaping, and so on. If budget is a real concern, you should provide options within a price range that fits. In the final analysis, however, your plan should reflect how completely you have understood the client’s dream house coupled with your expertise on what will suit them best for a budget that makes sense.
Validating Your Value
As a seller of value, always be ready to substantiate the financial and business impact of your proposed approach and solution. If clients do not trust or believe in your value proposition, they will be less likely to partner with you to help them to succeed. To do this you must start by answering some key questions:
- What specific problem is the client trying to solve? Why?
- What are the specific benefits of solving the problem?
- How will you know if success has been achieved?
- How did the problem or need come about?
- What has stopped it from being resolved before now?
- How does the problem manifest itself from a business perspective?
- How important is this compared with other strategic priorities?
- Who/what else is affected? Who cares most about solving it?
Differentiating Your Value
As a seller of value, be ready to point out how your solution is different and better than any other available alternatives. If buyers do not appreciate what makes you better, faster or cheaper, they will most likely look for the cheapest alternative.
Back to our example, can you list your unique qualifications as an architect that sets you apart from the rest? For example, do you focus exclusively on custom residences within a certain price range? Are you an expert in a certain style or design? Do you have special access to materials? Can you turn around plans faster? Do you work directly with the onsite contractor to ensure the plans make sense? Do you understand the local planning commission rules and regulations? You get the idea...articulate what makes you stand apart from the pack in the eyes of your target clients.
As a seller of value, check that your differentiators still matter to the customer and agree upon the financial impact of those differentiators. Just think, for example, of how many costly fixes and re-designs can be avoided if there is a daily onsite check on building progress.
Whether you are the seller of simple or complex solutions, value selling can be your ticket to win. Your understanding of your customer’s unique needs coupled with your ability to provide a unique solution can be more compelling than any lower cost alternative.
Learn more at: http://www.lsaglobal.com/solution-selling-training
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