“You’re too expensive”, “we don’t have the budget”. These are two variations sales professionals are met with on a frequent basis. Cost of products can often be a barrier for confirming and closing a sale with a client, but learning how to express the value can increase the chances of success.
In determining prices, costs along with perceived value are primarily considered. A customer’s perception on product/service worth constitutes value.
A customer buying on lowest cost alone, may get a good deal. On the other hand, there’s the potential risk that purchasing from the lowest bidder could reflect badly on the client, in that they don’t ultimately obtain the results they were seeking. There’s an old adage that often rings true: ‘Buy Cheap, buy twice’, meaning that often a customer pays the lowest rate, but ultimately this costs them more in the long run; maybe in fees, in reputation, lost time or one of many other criteria, so it is incumbent on the sales professional to demonstrate the value of the product of service, and not focus on the price.
How many of you reading this article own an Apple iPad?
Despite there being a range of tablets provided by competing brands, at a cheaper rate, buyers largely seek one that is Apple branded. Why? Because they implement and execute unparalleled strategies. They are extremely successful at communicating the value of their products. Thus, customers are happy to pay for the product at a higher price because they believe in the exchange – that they get value for money.
Aligning their sales and marketing operations has led them to implementing effective communication strategies, which in turn has established Apple as the go-to exclusive brand.
Whilst differentiating between cost and value, we also have to fully engage with our product or service – really believe in it and its value. To close any sale, we need to believe in the products or services we are offering – if the conversation lacks passion, the customer will not be willing to proceed forward! A customer wants a compelling reason to purchase: to feel like the product or service is going to be a valuable investment.
Just think – if a salesperson approached us but they lack belief and enthusiasm in their product, would we purchase the product?
Although buying is a favorable pastime, people largely hate being sold to, so as sales professionals it is our duty to ensure that we connect with our customers and help them buy products and services that we believe are suitable for them and meets their needs; we want the buying process to be as easy and efficient as possible.
Adopting a conversation strategy and knowing which questions to ask can help overcome this challenging stage. It is the responsibility of a salesperson to make sure that there is compatibility, where the customer wins as well as us, the sales professional. How do we achieve this? We need to understand the big picture before we pursue the sale.
‘Do you have a budget in place?’ A simple, yet effective question we can adopt and place into a conversation with our client, but how many of us are hesitant to ask and enter a sales process without finding out this vital information? In utilizing this question, or similar we can identify if there is a true fit for all parties involved.
Communication is key! To successfully service our clients and secure sales, it is vital that our organization adds value at every stage of the customer experience and sales process. Only when we do this do we become successful and consistent in the art of sales performance.
To learn more about how Miller Heiman Group Middle East can assist your organization leverage better results, you can contact us at the following: