SALES TIP OF THE WEEK: Using Responsibilty As A Tactic

From ContractorSelling.com

Have you ever heard any of these comments before?

1. “It’s hard for us to sell value. We’re the highest priced in our market.”
2. “Customers buy on price now and since our price is higher I lose a lot of sales.
3. “You don’t understand, our competitors are all low-ballers.”

Every one of these comments is based on the price-value assumption. The price-value assumption defines value based only on price and not on the true way that your customer really perceives value.

Taking this assumption to the extreme would mean that everybody would prefer to pay the lowest price for everything and that every purchase we make are valued simply on price and nothing else.

If it’s not the price that people base their purchases on, then what is it? Looking at the way people actually do purchase you will find that most people have an opposite perception of value than does a weak sales person. The public at large has a perception that a higher price automatically creates the impression that the service or product must be better. That is why we are all drawn to things that cost more and that those things become more and more popular.

For example, Apple’s i-Pod is a much more expensive mp3 player than almost any other brand. Yet people are drawn to them in huge numbers. In fact many have already purchased their 2nd or 3rd one. In fact, can you even think of another brand?

How about a cup of coffee? Time was when you get a cup for 50 cents. Now the Starbucks experience has made the $2.00 cup of coffee seem normal. So much so that others have stopped trying to compete with them on price. In fact the others have now raised their price to match or exceed Starbucks. The logic is that if a $2.00 cup of coffee is good, a $2.50 is that much better.

So what is your customer telling you when they say your price is higher than the competition? They are saying that you and your services and products are exactly the same as the competition but it just cost more. I didn’t say consumers were stupid.

You MUST create differentiation or you will lose on price. What is the pallet to pull from when differentiating? Does your proposal offer more service, more warranty, and a better product than the competition? And lastly, are you perceived as a better sales person than your competitor?

How would you know what the customer thinks anyway? That’s easy, you simply ask them. When is the last time you asked your customer how valuable they thought that YOU were in this process? Think about it. This may be the most valuable question you will ever learn to ask.