And why should your prospects behave any differently?
Especially if they aren’t the final budget holder and they have to justify the purchase choice to their manager or board.
Honestly, forget about the specific product or service you are selling, placing yourself in their shoes, faced with making a purchase what would you base your decision on?
You should assume that in looking at this, all options are fit for purpose.
Most people would look at Valve for Money, I know I would and I’m sure it’s on your list too
Tough one isn’t it?
What you’re essentially looking at is not Value for Money, but Value versus Money. It’s a see-saw. Overload the prospect with relevant value and the see-saw effect makes the price go up. Overload the prospect with a higher than expected price and he will expect the Value to go up. Very simple idea.
BUT this is the crux of it….
When there are no other distinguishing factors between what you are offering and what your competitor is offering your prospect, then the prospect will make their selection based on the only criteria they have – the price.
Read it again please….harsh but true. If you are losing out on price then DEFINITELY you are failing to create sufficient value in the heart and mind of the prospect
Now, keep in mind the see-saw example above – where do you think the see-saw is with regard to your prospect and their incumbent provider?
I would say it’s probably flat, and if it does fluctuate, it will be the prospect feeling that the price is too high for what they are getting.
Your job is to wildly upset that see-saw with your value proposition.
Simple example – how much would you pay for a meal (read dinning experience) at Le Manoir aux Quat’Saisons?
How much would you pay for a meal at Pizza Hut?
Why the difference? It’s still food….
Well obviously, it’s because there is demonstrable, visible, out of the ball park difference in the experience that each outlet delivers…but it’s just food.
Just food! Is exactly the point. How the experience has been packaged, sold, marketed, presented and delivered makes it NOT ‘just food’ at all.
You and your business may not have the budget of either food outlet above however, what you do have is a chance to create, instil, build and deliver value into HOW you sell and market your products and services, how you interact with, respond to and build relationships with your customer.
So, the next question is this – How can you demonstrate all of this to your prospect when they are still a prospect, when they’ve not yet bought from you?
It’s a tough scenario – new provider, value based solution, more expensive, versus the cheap incumbent? Better the Devil you know and all that…
David and Goliath if ever there was one.
So, what you do is this:
- During the sales process you treat the prospect as if they are already a customer
- You don’t quote a price until you have discovered exactly what they want, how they want it, when, what colour etc…you get the picture, you need all the details at this stage, everything
- You understand their pet hates, their motivations, their pain and pressure points, you understand their psyche, their fears and their challenges, you understand what success for them looks like and what success for their boss, and their boss’s boss looks like
- You find out what they like and dislike about the current provider
- You find out WHY you are sat there, having this conversation with them NOW
- You get them to sign off on everything that they need your solution to provide – EVERYTHING
- ONLY then, and I mean only then, do you start talking price – there is a big caveat here; I am assuming that you are pitching to the decision maker (why would you be doing all of this work if you weren’t???)
- Having clearly designed a TAILOR MADE solution specifically for them, that they have signed off on, you have created a proposition that is beyond the scope of their current provision.
- Therefore you are not selling your solution and your price versus the solution and the price of the competitor provider, you are selling the difference in your value versus the difference in the incumbent’s value – which you’ve just proven is non-existent.
This is a simple but very effective sales process that will guide you through this, but that’s for another day….
The key thing to remember here is that this process fails totally if you can’t demonstrate real value – demonstrating value is NOT smoke and mirrors, it has to be a real tangible benefit to that prospect.
Hope that helps you
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