Sell Value, Not Price

Salespeople inherently want to sell value, and rarely intentionally sell on price. However, the problem is not based in intent, but lack of skills to actually sell value properly or to even know what value is (in relation to what they are selling). So, absent the right planning and skills, many sales people end up selling on price.

We like to look at value very simply: total benefit minus cost for the customer (value = total benefits – cost for the customer). During the sales process, you want to get as many benefits on your side of the equation as possible to avoid selling only on price. You need to quantify all of the benefits and be able to present them as a whole.  

To lead customers into a value-focused conversation you must first start with research: what are the key business initiatives, who are the stakeholders, who are the users, who are the gatekeepers/influencers? As you map out the organization, you’ll quickly discover that the different constituencies have very different values and you begin think about the total benefit for the customer – not just one area.

Lots of salespeople find it difficult however to extract consideration of value from the gatekeeper’s/decision makers. You need good conversation skills, and must always remember to relate it back to their business’ initiatives. It’s also important to get them forward thinking, looking to the future, so they can envision the total cost of ownership. Lead these people in your direction by using/sharing the information you obtained from other stakeholders via research. Be sure your value proposition is fully organized and presentable when you get to this point, confirming and showing understanding of their company’s issues. If you don’t stay focused on these pieces, the customer may flip the conversation to price.