Selling Value Will Not Overcome Price Pressures
Are you still hanging onto the notion that value is king. Let me ask you a question. Why are price pressures increasing? Why is it getting harder to displace competition? Why aren’t your sales growing more than just what the organic growth is generating? You know the growth that comes when the market improves and your customer gives you more orders.
Every time I conduct a sales process analysis for a company I find that selling value is not working. The issues I mentioned above are all present. And companies are losing ground against commodity buying.
The challenge with selling value is creating an exponential difference that can offset a lower price competitor. Instead, most sales people can only create value that is equal to and not displacing the impact. In other words, how does the value bring bottom line impact or can the value offset the pain.
Most sales people and companies selling value are finding it harder to show how to fill in the gap created by price and ROI impact to offset price. Please keep in mind, if someone is going to change suppliers or vendor there MUST be a difference (in huge dollars) to justify the change.
The problem is twofold. One is to develop a huge impact between price and the value.. So what if your company has the greatest QC process or you offer the best reporting system. All of this does not fill the gap between value and a lower price.
The second problem is to translate the value you offer into a monetary impact in terms of huge dollars that can blow price out of the water. Most sales people and companies alike don’t know how to develop these numbers.
First, examine how and what you offer and can it generate money to your customer’s bottom line. Basically, you need to move away from feature/benefit selling. You should really adopt an ROI selling model if you really want to make a huge fundamental change in your selling model.