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If you sell on value rather than price, chances are that you will have an easier time closing a sale than if you focused only on how much it is going to cost the customer.
Think about it, if you went to an electronics store in search of a TV, and all the salesperson did was tell you the price of every television you looked at, chances are you would either ask him to please explain some of the features or benefits of each model, you would ask him for the cheapest model in the size you want with the features you want or you would walk out of the store in search of a better and more informed salesperson.
We don’t focus on price alone when making a buying decision, we only do that if all other things are equal, then we look at the cheapest price in the market. If I need a hundred pencils every semester for my 5-year-old son, I am going to look for the cheapest brand in the market – all other things being equal.
However as a salesperson if you focus on selling the value of your product as well as the price, then customers will be willing to buy your product even if you are more expensive than your competitors.
The cult of iPhone users is based on this premise, that customers are willing to pay a lot extra if you can show them the value in owning the product. The iPhone is one of the most expensive phones out there, but it is invariably sold out each time a new model is launched. We have not heard that happen with Nokia, Blackberry or HTC models even though these manufactures make some great phones with features that are comparable to the iPhone.
Apple sells to customers on value and not on price and it uses this same principle when marketing its computers, laptops, iPods etc.
In this podcast we are going to talk about how you can sell more on value and less on price in order to become the top selling salesperson in your field.
1. People are willing to pay more for a product if they think it gives them a truly special or significant value.
People don’t only focus on price, take a look at the range of body lotions and skin care creams in your department store. You can buy a great lotion from a brand like Nivea for under $10, and you can buy an extremely expensive one for $45 from a premium brand.
Truth be told both companies probably have similar formulas and would have spent the same amount of money researching and developing a quality product.
However people are willing to pay for the $45 a bottle because they believe that it will make them look younger, have smoother skin, and contains premiums ingredients. They are buying based on value and not on price.
Think of your product – what value does it add to your customer’s lives?
2. Sell the sizzle, not the sausage
This is a great way to remind you to sell the benefits and not the features of a product.
Don’t focus your sales pitch on what the product is – in terms of its features, instead focus on what it can do for your customers. In other words sell the sizzle – not the sausage.
3. What extra bonuses or benefits will the customer receive?
Rather than focusing just on the features and benefits of the product, you should also focus on what else the customer will receive. Have you ever contemplated buying a product online? For almost every information product sold, there is always a special section telling the prospect what extra bonuses the customer will get and what they are worth. Take a look at your product and make a list of the bonuses or extra benefits that you can offer your customer. It could be additional products, a discount on their next purchase or even a dedicated customer service line. When you make your sales presentation focus on these bonuses and benefits rather than on the features or benefits of the product.
4. Try to differentiate your product or service as much as possible
Do you know who your competitors are? Part of being an outstanding salesperson is knowing your competition better than you know yourself.
Customers are extremely well-informed these days, so you need to be able to tell them why your product or service is better than all the other options out there.
Take out a piece of paper and think about your competitors product or service, list out all the things that the two products have in common and what differentiates them from each other. When selling to your customers focus on these differentiators.
5. Ensure that your customer service is truly outstanding
No one wants to buy a product only to discover that the customer service is dismal or non-existent.
As a salesperson you are the product to your customers, if your customer service is poor, they will think of you and blame you for the same.
Take a critical look at your customer service department; put yourself in your customers’ shoes – what would make your customer service truly outstanding in their eyes?
Make a list of these items and ensure that they are implemented.
For example: I love Dell’s extended warranty program for this reason, no matter where you are in the world, they will repair or replace whatever part of your laptop is damaged for free, as long as it is under warranty.
I have had a spare charger sent to my house, had new batteries put in, and even had my screen and keyboard replaced without paying a single dollar. I also did not have to call them more than once and their follow up was amazing. While my laptop is not as fancy or fast as a Mac, I still would recommend a Dell to anyone based solely on their truly outstanding customer service.