Sell Value versus Price in Complex Sales Situations
We know from sales leadership simulation assessment data that the real winners in complex business sales situations focus on customer value, not price — even when price is a critical factor. How? Top solution sellers know that buyers ultimately care more about the value than price. A less expensive product or service that doesn’t fit their needs or that adds more risk or complications is usually not worth it – you get what you pay for.
Defining Value During the Sales Process
Value is truly in the eye of the customer or buyer. In order to make an important and material purchase, a buyer has to fully understand how the tangible and intangible benefits outweigh the fully loaded costs. If your sales team is feeling pricing pressure, remember that while price is an important piece of your value proposition, it is only one component of the overall buying decision. What really counts is your ability to fully deliver what matters most.
The Role Your Value Proposition Plays
Your unique value proposition should be an essential part of your brand positioning, messaging and go to market sales strategy. Every sales rep should be able to clearly articulate what sets you apart from the competition to your target clients. An effective value proposition answers three key buyer questions:
Defining Customer Value is Dynamic
The best solution sellers understand that your value proposition may need to be customized according to the needs of each customer. Not every buyer is the same; they have different needs, come from different backgrounds, occupy different situations, have different working styles, fulfill different roles, etc. And because high performing sellers intimately know their target customers, they know that the unique recipe for customer value has important nuances across customers.
The better you can match what you offer to what the customer values most, the better your chance of closing the deal. Remember, for the same product or service, different customers perceive different levels of value.
So Where Does Price Fit?
If value matters more than price, where does price fit? Know your competition. You can charge more and still win if the perceived value is greater in the customer’s eyes. What matters is the way the customer assesses value vs. price. This is the seller’s challenge.
The Bottom Line
When a seller can deliver according to the expectations set in the value proposition to the customer, they earn a customer’s satisfaction, loyalty, and the opportunity for repeat business. This is the way to win again and again.
To learn more about How to Sell Value versus Price, download The Top 30 Effective Sales Questions that Matter Most
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