Sell On Value


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Everywhere we go – regardless of the industry with which we’re working or the market position of the company we’re helping – we’re asked about how to win more sales. Or, just as often, we’re asked how to stop losing sales to competitors who undercut price.

This is true for manufacturing companies competing in the global market against rock-bottom-cost Chinese suppliers. It’s true of service providers who find themselves defending their pricing against a competitor who has commoditized a particular product or service and made it difficult to differentiate.

In cases like this, where the major issue becomes price, the best strategy to compete is to learn to sell on value.

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Sell On Value

  1. 2. Sell on Value, Not Price <ul><li>Agenda </li></ul><ul><li>Introductions </li></ul><ul><li>Defining “value-based selling” </li></ul><ul><li>Acknowledging price, but positioning for value-based sale </li></ul><ul><li>Value statements...prove your value </li></ul><ul><li>Solution messages...the value of a problem solver </li></ul><ul><li>Target expert brings value </li></ul><ul><li>Company identity...look like you offer value </li></ul><ul><li>Features vs. benefits, and how that relates to price </li></ul><ul><li>Importance of the needs analysis </li></ul><ul><li>Key points summary </li></ul><ul><li>Q&A </li></ul>
  2. 3. Defining &quot;value-based selling&quot; <ul><li>An economic value is the worth of a good or service as determined by the market. </li></ul><ul><li>Exchange value = always the result of subjective value judgments (emotional). </li></ul><ul><li>Value calculated by actual measurements of ROI instead of production input and or demand vs. supply. </li></ul>
  3. 4. Acknowledging price, but positioning for value-based sale <ul><li>Price is a factor, but only one factor among many, even in a commodity sale. </li></ul><ul><li>Price must be acknowledged, but effectively transitioned into relative value. </li></ul><ul><li>How does your team (sales, marketing, customer service) accomplish this? </li></ul>
  4. 5. Group examples and discussion <ul><li>Creative Foam </li></ul><ul><ul><li>Solutions For The Future </li></ul></ul><ul><ul><li>What are your project needs? We'll deliver </li></ul></ul><ul><li>Kent Design </li></ul><ul><ul><li>Where People Make The Difference </li></ul></ul><ul><li>Guy Hurley Blaser & Heuer LLC </li></ul><ul><ul><li>Something Bad Has Happened - Is Your Agent Prepared? </li></ul></ul><ul><ul><li>Tired of Teaching Your Insurance Agent The Bond Business? We can Help. </li></ul></ul><ul><ul><li>Are Rising Workers' Comp Costs Sinking Your Bottom Line? </li></ul></ul><ul><ul><li>Reducing Overage When You Downsize - Don't Outsmart Yourself </li></ul></ul><ul><li>Dan Wood Plumbing * Heating * Cooling </li></ul><ul><ul><li>Professional Service </li></ul></ul>
  5. 6. Value Statements... Prove Your Value <ul><li>What are value statements? </li></ul><ul><li>Quality: Low PPM Rating </li></ul><ul><li>Delivery: 100% On-time delivery over the last 12 months </li></ul>
  6. 7. Solution Messages <ul><li>What are solution messages? </li></ul><ul><li>Regulatory Compliance: Accurate lot tracking for FDA compliance </li></ul><ul><li>Cross Contamination: ISO 7/Class 10000 clean room </li></ul><ul><li>How does your image/brand, website, literature, customer service communicate this? </li></ul><ul><li>How does your sales staff communicate this? </li></ul>
  7. 8. Target Messages <ul><li>What are target messages? </li></ul><ul><li>Be the expert: Case studies, testimonials </li></ul><ul><li>Connect with the market: Terminology </li></ul><ul><li>Niche markets </li></ul><ul><ul><li>By markets </li></ul></ul><ul><ul><li>By decision maker type </li></ul></ul><ul><ul><li>By service/product </li></ul></ul><ul><li>How does your image/brand, website, literature, customer service communicate this? </li></ul><ul><li>How does your sales staff communicate this? </li></ul>
  8. 9. Company Identity <ul><li>What is a company identity? </li></ul><ul><li>How is it conveyed? </li></ul><ul><li>Does your staff match up with the identity you are trying to communicate? </li></ul>
  9. 10. Features vs. Benefits and how that relates to price <ul><li>Feature = what the product or service &quot;does.&quot; </li></ul><ul><li>Benefit = what the feature &quot;solves.&quot; </li></ul><ul><li>Three &quot;types&quot; or &quot;targets&quot; or &quot;impacts&quot; of benefits. </li></ul><ul><ul><li>Personal </li></ul></ul><ul><ul><li>Organizational (familial) </li></ul></ul><ul><ul><li>Financial (where you get your ROI and can relate to price) </li></ul></ul>
  10. 11. Features vs. Benefits and how that relates to price, cont. <ul><li>Group Exercise </li></ul><ul><ul><li>Give Feature </li></ul></ul><ul><ul><ul><li>Benefit </li></ul></ul></ul><ul><ul><ul><ul><li>Personal </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Organizational </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Financial </li></ul></ul></ul></ul>
  11. 12. Importance of the Needs Analysis <ul><li>Without a needs analysis you cannot tie your features back to benefits </li></ul><ul><li>Without benefits you cannot... </li></ul><ul><ul><li>Justify price </li></ul></ul><ul><ul><li>Separate yourself from the competition </li></ul></ul><ul><ul><li>Move an &quot;Even Keel&quot; buyer or &quot;develop&quot; reasons to buy </li></ul></ul><ul><ul><li>Present solutions </li></ul></ul>
  12. 13. Key Points Summary <ul><li>Value vs. Price </li></ul><ul><li>Everything you do communicates your relative value, whether you acknowledge it or not </li></ul><ul><li>Prove Your Value (intentions are irrelevant) </li></ul><ul><li>Messages need to convey Solutions! </li></ul><ul><li>Messages must be Targeted! (market and buyer types) </li></ul><ul><li>Corporate Identity - You are who you appear to be </li></ul><ul><li>Features vs. Benefits </li></ul><ul><li>How do you know? Ask - the needs analysis! </li></ul>
  13. 14. Q&A
  14. 15. Thank You