Understanding the Power of Value Based Selling
There is a simple truth that one needs to embrace before one can fully comprehend the true power of value-based selling! This truth tells us, that if your buyer has the financial means to pay full-price for your offering, then you will NEVER lose the deal on price, EVEN if the buyer chooses a competitor’s cheaper offering.
So how does this work, and how does it all make sense..? Let’s illustrate this point further, by looking at the following scenario.
Scenario 1: You and your competitor both pitch your separate offerings, each to the same client, on consecutive days. You both have good products, and you both have good track records for service and knowledge in your industry. You each ask the same questions in the proposals, and you each receive similar answers back from your client. Both of you deliver well-polished presentations that are impressive and provide similar offerings. The ONLY difference, is that your competitor is doing so at a LOWER price. The buyer chooses ultimately to go with your competitor, who offered the lower price option, and you now believe that the reason you lost is because of PRICE.
WRONG! You only lose on price if the customer cannot afford your price. If the customer can afford the higher price but selects the lower offering, then you have lost on VALUE. This should tell you, that you have failed to demonstrate the value that your company brings to the deal. In other words, you have not done enough to DIFFERENTIATE yourself, from your competitor.
Buying Based on Value
The best way for you to separate yourself from price, is to carefully evaluate how your buyer defines value? There are 3 areas that we can look at, which will help you differentiate yourself from your competition.
- You. What you personally bring to the table?
- Your support team. What customer support and back-up does your client receive after the deal has been done?
- Your deliverable. The product and service that you are actually selling?
Point 3 relies on your product offering being highly unique and in our case, a Danpal solution usually is just that, unique in the market. This means that for all intents and purposes, we have an edge in the market, as it is usually the first 2 points that offer the possibility for differentiation.
Your next step then should be to remove point 3 from the equation and focus on the first 2 points as listed above. By doing this, you can make the changes needed to your approach of selling your offering and in doing so, alter the experience of your buyer.
To summarise, we need to remember that how we present ourselves and our offering to the buyer, is the first step in differentiating ourselves from others in the market. Then it is up to us, to ensure that our back-up after-sales service is up to scratch, an area often overlooked. Fix these 2 vital key-areas, and immediately, your value offering is greatly increased!
If you would like to learn more or share your thoughts with us, please reach out to us at [email protected]