You may have heard buzz about the value selling process and some of the supposed benefits it affords. If you’ve been paying attention, you might also be wondering about how that value focus can edge out selling on price. This guide will help straighten it all out for you; read on, and learn more about how value-added selling can help you go above and beyond.
Distinguishing Value And Price
First things first, we need to establish what we mean when we say “value” and “price”. The two are used interchangeably, after all, so drawing a distinction here is necessary.
When we’re talking about price, we’re talking about the dollar tag number that a customer is willing to pay for your product or service. Value, on the other hand, is what your customer believes they will gain by purchasing and using your product. Value, in this context, goes beyond the simple dollar amount and can vary based upon your target audience.
By-and-large, though, when you’re talking about attributes like “how much time this will save you,” “how long this will last,” “how stain-, dent-, or scratch-resistant something is,” and the like, you’re talking about value. It’s a combination of perceptions about what’s important and factual information about what a product or service can do in the context of that customer’s existence. Informed consumers know the difference, and as an informed salesperson it’s your job to learn what is valuable to your customers and speak to that.
Why Value Is So Critical
It’s true that there are still customers who conflate value and price. These prospects are likely to go for the lowest price, thinking that it’s valuable, and, depending on their temperament, may end up disappointed with their purchase. Conversely, savvy customers recognize the true nature of value, and, as a result, are willing to pay a higher price in order to obtain the value they need. This is what makes value a necessity from the customer’s standpoint, and as a salesperson, you can use that to connect with clients and sell more.
Plus, the benefit of focusing on value over price doesn’t end there. As a salesperson, your focus on value is going to afford you with some unique benefits throughout the selling process.
For instance, in a value-selling framework, you’re often more capable of overcoming any sales objections that may arise. By honing in on value over price, you’re often able to supersede objections, by showing that the value—those benefits the customer gains long term—are worth it in the long run and beat out and hangups about pricing.
Value-focus doubles as a manner of securing price consistency across sales as well. As price becomes secondary, there’s less need to use price reductions as a method of negotiation. You’re selling off value, which means, in the eyes of the customers who realize it, the price they’ll pay is a fair one for the eventual value they’ll get in return.
Be sure to look beyond price, and start shifting your outlook to a value-oriented one. It’s through these efforts that you’ll be able to generate more sales and boost that bottom line.