My friend, and mentor Joe Jones taught me an important lesson about delivering value to customers. That in the selling process, typically the most concerned person about price is the sales rep.
Competitive markets drive prices lower. When companies fail to train sales people to promote the idea of best value, the default position is to attempt to be the lowest priced.
But lower prices are not really what your customers are after. Their after the best value. And something that is somehow better than what they can get from the other guy.
Delivering Value To Customers
To best demonstrate value to a client you have to remember that value is like art. It’s in the eye of the beholder. You deliver value when your customer perceives she is receiving more than she is paying for.
Cheap Ain’t Good, and Good Ain’t Cheap
It’s difficult to deliver value to customers if your company is lowering it’s profits by defaulting to being the low, or near lowest cost provider. Charging less results ultimately in delivering less value to customers.
If you charge more don’t forget to deliver more value, as well as a better product or service that’s light years ahead of what they can get from the other guy.
Don’t Guess About Value
Delivering value to customers requires that you find out upfront if your customer has some edict to buy the lowest price. If so then don’t waist your time.
State upfront that you’re not the lowest priced vendor. Then ask your customer what best value will look like to her.
Take A Hint
Take a look around your potential customers office. Take note of the office furniture, and equipment. Is it the more expensive or lower end market stuff. Take note of the business suit your client is wearing, their shoes, cologne or perfume. Past decisions are the best indicator of how future decisions will be made.