I'll take it

Written by Steve Waterhouse


Cutting prices can lose business ďIf you can do it for $12, you can haverepparttar business.Ē With his next three words, Bill lost thousands of dollars of business. He said, ďIíll take it!Ē

Too many sales people focus on price and forget about value. Price is simply what you charge. Value isrepparttar 139413 sum total of all ofrepparttar 139414 positive effects thatrepparttar 139415 product or service has onrepparttar 139416 buyerís business. In most cases, your offering has many benefits forrepparttar 139417 customer. Each of those has a corresponding value that adds torepparttar 139418 equation. Business customers buy because they believe that they will get value that is significantly larger thanrepparttar 139419 cost. In fact, most buyers are unaware of many ofrepparttar 139420 benefits of their purchases and therefore underestimaterepparttar 139421 value they receive.

Every price is too high without an appreciation of value.

If that is true, so is this:

Every pricerepparttar 139422 customer offers, before they understandrepparttar 139423 value, is too low!

Could that be why you lose proposals that simply respond to RFPís? Mayberepparttar 139424 customer canít find your value in that sterilized document?

Could that be why you lose when you respond torepparttar 139425 caller who says, ďI just need a price?Ē Maybe they think you are just like everyone else. After all, you did not bother to tell them any differently.

Hey, we all reject stuff we donít understand.

How many times have you seen someone handing out free stuff onrepparttar 139426 street or inrepparttar 139427 mall and simply passed them buy. Itís FREE and you wonít take it! You donít seerepparttar 139428 value.

To increase our chances of makingrepparttar 139429 sale, we must do three things to ensure that we have maximized value inrepparttar 139430 customerís mind:

1. Understand their business

You must understand your customerís business well enough to explain to them how your offering will improve their bottom line. This means asking more questions and doing more research before making your proposal. The good news is that once you understand one company in a given industry, most ofrepparttar 139431 others will have similar circumstances.

Example:

A distributor of Swiss watches was trying to get a container load to their US jewelers in time forrepparttar 139432 critical pre-Christmas buying season. She was shopping for shippers and two responded. One offered a price that was $9,000 and assuredrepparttar 139433 shipper that they could get them there on time. They had years of experience and many testimonials that showed that they had done it before. The second shipper cutrepparttar 139434 price in half and guaranteed that ifrepparttar 139435 shipment was late, they would rebate 100% ofrepparttar 139436 fee.

Which shipper wonrepparttar 139437 business?

The first one.

They knew that a container of Swiss watches holds 5,000 watches with a retail price of $3,000 each or 15 million dollars. Ifrepparttar 139438 container arrive late,repparttar 139439 watches will have to be sold at an after Christmas discount. Thatís a loss of $1.5 million! Clearlyrepparttar 139440 distributor would care more aboutrepparttar 139441 reliability of company A thanrepparttar 139442 potential $4,500 rebate from company B.

2. Maximize your value

If is often true that different people inrepparttar 139443 buying organization will see different value in your offering. Inrepparttar 139444 example above,repparttar 139445 person onrepparttar 139446 loading dock might likerepparttar 139447 lower price. Butrepparttar 139448 product manager,repparttar 139449 CEO and others will appreciaterepparttar 139450 value of reliable service.

Getting Beyond the Buyer!

Written by Steve Waterhouse


One ofrepparttar most common questions I receive from my clients and those I coach is, "how do I get pastrepparttar 139412 buyer torepparttar 139413 real decision maker". This is clearly one ofrepparttar 139414 most important questions for any sales professional to answer because so much rests on reachingrepparttar 139415 real economic buyer. Onlyrepparttar 139416 true decision maker can understandrepparttar 139417 total value that your offering brings to their company. Onlyrepparttar 139418 true decision maker can appreciate that a partnering relationship with your company may berepparttar 139419 best way to reach their goals. Onlyrepparttar 139420 true decision maker can redefine their own needs based on your input and, as a result, end up buying something completely different fromrepparttar 139421 initial specification. Buyers live to satisfyrepparttar 139422 written definitions of others. True decision makers live to solve problems for themselves and their companies.

This age old problem had been made easier to solve asrepparttar 139423 complexity ofrepparttar 139424 sale has increased. Here are two techniques that take advantage ofrepparttar 139425 complexity in a sale to help you get torepparttar 139426 real decision makers.

1. It would be irresponsible

Too oftenrepparttar 139427 buyer presents us with an RFP (request for proposal) or specification that someone else wrote. Inrepparttar 139428 mistaken belief that they are doing their job, they attempt to block access to those who actually wrote these documents. You know you must get through!

Step one is to reviewrepparttar 139429 requirement:

Determine whatrepparttar 139430 original decision maker might have been trying to accomplish when they wroterepparttar 139431 specification. Imagine, for instance, thatrepparttar 139432 specification is for new accounting software. Whilerepparttar 139433 specification calls outrepparttar 139434 requirements, it does not detailrepparttar 139435 problems thatrepparttar 139436 company is attempting to solve. I may not mentionrepparttar 139437 new SEC requirements or changes in their Board's policies. Furthermore,repparttar 139438 buyer could not possibly answer detailed questions about these issues.

Step two is to definerepparttar 139439 rules of business:

Rather than being a vendor of a simple product, define yourself as a provider of comprehensive solutions to complex problems. As such, you and your team are obligated to makerepparttar 139440 following request: "Since this software covers areas of legal and corporate compliance, it would be irresponsible of me to sell you something that might not comply. For that reason, we are required to conduct a brief needs analysis withrepparttar 139441 ultimate decision makers."

This technique can work in a wide variety of situations. The power rests in your honest ability to position yourself as more than a vendor. By creating a situation in whichrepparttar 139442 buyer feels obligated to connect you withrepparttar 139443 real decision maker, you gain an advantage over all others. Warning: Be sure to makerepparttar 139444 buyer a hero inrepparttar 139445 process. Let it be known torepparttar 139446 higher-ups thatrepparttar 139447 buyer's astute awareness torepparttar 139448 ramifications of this purchase made it possible for you to do a better job forrepparttar 139449 client.

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