Partner Article

Selling price over value, a seasonal warning

Despite Christmas being the season of price wars, a world leading sales training organisation has warned sales leaders and their teams to steer clear of high street style price cutting and instead adhere to the principles of value selling if they want their businesses to flourish and prosper in the long term.

Doug Tucker, Managing Director of Sales Commando, explains: “As we’ve come out of recession – and with many economies still stuck in neutral – I’ve seen too many businesses tempted into selling on price alone. What they’re finding now is that this is a near impossible competitive advantage to sustain.”

But how can businesses sell on value, especially in the face of ever stiffer competition? For Doug Tucker, and for the many international brands Sales Commando trains, the answer comes down to research, belief and confidence.

Mr Tucker continues: “The first step to selling value is thoroughly understand the benefits your company offers, and believe in them. The next step is to determine how these benefits, or values, can help solve your prospect’s problem. The final step is to pitch this solution to your prospect with complete confidence and conviction.”

“Yes, selling on value requires more work than selling on price but the rewards are far greater in terms of maintained or even increased margins and that can only be good for business.”

Regardless of the values a company has to offer, there will inevitably be customers who are solely focused on price. Sales Commando’s Doug Tucker has one swift and effective way of dealing with this type of prospect:

“When you’re researching your prospect list, pay particular attention to those who are known to buy on price alone, then chuck them out. These kind of customers often turn out to be the biggest headaches whilst those who buy on value will generally be with you for the long haul. If you believe you can’t afford to do this, believe me, you can.”

With festivities now gearing up, Doug Tucker has one final word or two of advice:

“To put value selling into a seasonal analogy, my advice is “don’t sell the tinsel, sell the tree”. The tree represents the powerful benefits of a product or service and the strength of the company behind them. The tree is well rooted, here to stay; the long term solution to problems prospects are willing to pay more for.”

“On the other hand, tinsel is simply a price that’s been discounted. All glitter, no substance. It’s here today, gone tomorrow - and no business wants to be that.”

This was posted in Bdaily's Members' News section by Sales Commando .