Have you ever sold a product that was not the lowest cost product in the market? If you said yes… congratulations. I congratulate you because you were obviously able to sell a product or service based upon the value of the product or service and not the cost.
Understanding the difference between the two is very important for every sales person to understand. Many inexperienced sale people will fall into the trap of fearing a sales situation in which they are competing with a product or service that is being offered at a price that is less than theirs. The big question becomes “how can I be competitive if my price is higher”? The answer should be obvious but if it is not, then you might be in danger if in the moment of discovering that your price is higher than your competitors you might begin to get a bit “paranoid” about losing the sale and you lose your ability to effectively communication the “value” of what you offer. Before you lose your cool and quite possibly the sale itself, think about the following.
Consider several recent purchases that you have made for yourself or for your company. Then, ask yourself the following question. Did I purchase the absolute lowest price product in the market? For example, did you purchase:
• The lowest price car?
• The lowest price shirt?
• The lowest price shampoo?
• The lowest price shoes?
• The lowest price groceries?
• The lowest price haircut?
The point here is that we don’t generally purchase the lowest price of anything. We purchase something because we see the “value” in what it is that we are purchasing. Therefore, the primary role for any person involved in business development or sales is to clearly explain the value so that our customers will understand what it is that they are purchasing and the reason that they will want to purchase from us even in the product or service turns out to NOT be the lowest price available. I find that it is helpful to quantify in as many ways as possible what the value is that we provide.
A very simple example of one value that differentiates products is the availability to deliver a product or service in an appropriate timeframe. I will never forget a conversation that I had with a client one time. He asked for a quote for an item that I had in stock. He said that he needed the product at that time. When I gave him the price, he mentioned that he could get the same product elsewhere for a price that was less than my offer. I told him that he should make that purchase with my competitor. He said, “well I would purchase it from your competitor but he doesn’t have it in stock”. I ended up making the sale at the price that I had quoted and not the price of some phantom product that was not available. What was the value in that sale? The value was that I had the product immediately available for him and that is when he needed it. Value trumped price!
Consider other values that you and your company can bring to the table and highlight those to your customers the next time that you talk with them. Don’t forget… it’s not the lowest price product that wins the order… it’s the one with the most value.
