Understanding what your customers value and making sure they get it is a key to success. No matter how low the selling price, if people don’t believe they’re getting “value for their money”, they won’t buy. On the other hand, the amount you’re allowed to charge for your services and products increases proportionally with the value you add.
Unfortunately, value can’t be defined or measured by the laws that govern the engineering side of our industry. Value, like quality, is what people say it is. What is valued by one person may be insignificant to another. Understanding and using the following 10 Principles of Selling Value allows you to give current and future customers more of what they value, while allowing you to make more money in the process.
- Sales Are Won by Grams . . . Not Pounds
In today’s volatile economy, there’s is no such thing as a “big win”. When dealing with customers, little things are vital, attention to detail is critical and everything you say or do increases or reduces value.
- To Build More Value . . . Add More Benefits
Each service and product you provide could offer customers dozens of benefits. But most people are interested in only three to five primary ones. Only after you determine what a person wants, needs and desires can you add the layers of value for which they’ll pay. To determine the benefits people want, ask questions. When you have a sincere desire to help, most people won’t hesitate to give you the information you need to provide the value they are willing to pay for.
- Don’t Sell What It Is . . . Sell What It Will Do
After you’ve determined what people want, tell them exactly what you can do for them. Avoid becoming bogged down in technical details and jargon. Instead, explain how the most important technical qualities and features provide the desired results.
- People Determine Value by Comparison . . . So Give Them More
Customers usually compare your offering with your competitor’s. Two ways to win the comparison game: First, offer uniqueness by customizing a solution to meet the customer’s needs. Second, submit a proposal which serves as a written understanding of what you will and will not do. The more benefits your proposal lists and uncertainty it eliminates, the greater value you establish.
- Demand Raises Value . . . Bidding Lowers It
To increase demand, reduce supply. When you offer unique benefits, or benefits your competitors have failed to provide, the demand for your offering increases. On the other hand, bids are awarded on low price. It is impossible to provide the greatest value for the lowest price. When asked to “bid” a job, take the opportunity to educate customers, reduce fear, create interest and build desire for the value you offer. When people can see you offer the greatest value, most will be willing to pay more to deal with you.
- Focus on Long-term Benefits . . . Not Short Term Savings
When it comes to spending money, most people think about the immediate impact of their purchase. Short-term thinking can have a disastrous affect when your customers make major decisions. Because you care, you have an obligation to help customers think long term. Show how each dollar spent today will pay huge dividends tomorrow. Help them visualize enjoying the long term benefits. Explain why it’s in their best interest to spend a little more right now.
- Do Things Your Competition Won’t . . . or Can’t
When you extend desired benefits your competition doesn’t offer, value increases. One benefit that can eliminate your competition and drive your value quotient into the stratosphere is guaranteed peace of mind. When customers know that whatever happens, you’ll take care of it, their resistance melts like a fudgesicle in July.
- Don’t Confuse Over-priced . . . with Under-desired
Until desire has been established, value doesn’t matter. Desire is a craving for something not yet obtained. To create desire, explain what’s wrong with the present situation and show how you’ll improve or correct it. Because desire grows with knowledge, provide hard evidence to reinforce the value of your offer.
- Your Biggest Advantages Are . . . You, Your Company and Your “Solution”
People buy relationships before things and trust people before products. The cornerstone of value is trust. The more people trust you and your company, the more value they receive. The more you customize a solution to solve your customer’s problems, the tighter you lock-out your competition.
- Remember . . . Price is Only a Detail
A buying decision should be viewed as a balance beam scale. Price is on one side and all the elements that determine value on the other. A decision to buy will only be made when value outweighs price. Companies who lower their prices to try to make a sale are doing their customers a disservice. 80% of all American consumers are willing to pay more for higher value. The key to making the sale isn’t lowering price, it’s raising value.
Learn how to take sales away from your competitors by selling your value; Attend one of our training courses and learn the four areas of value that other dealers can’t compete against. Here are the two best courses for selling value:
Trane Boot Camp, for Trane dealers
ASSET, for American Standard dealers
