MarkHolmesGroup  Consultant Board, Inc.  P.O. Box 3175  Springfield, MO 65808-3175 USA International: 417.883.7434  Toll-free USA:  800.841.8540 © 2016 Consultant Board, Inc. All rights reserved. Designed by Pro Blog Hub - Professional Blog and Website Creative Specialists

MARK’S INSIGHTS

When Customers Focus On Price,

Focus On Value

This axiom is most often credited to Warren Buffet: “Price is what you pay, value is what you get.” Price is outgo. Value is the tangible and intangible benefit received.    The exact price we pay depends on many factors like quality, brand reputation, reliability, performance, workmanship, service, support and warranties. Customers understand this. Customers want value, but they also want low prices. To get low prices customers have been known to tell sales reps, “Cut us a deal because we’re going to buy based solely on where we get the lowest price.” But don’t believe it. “What’s the problem with believing that?” It’s just not accurate. Studies indicate that about 95 percent of all purchase decisions are based on factors other than price, leaving maybe 5-10 percent of decisions based on price alone. “Do we grasp that the #1 key for landing sales is not price but how we differentiate our value?”  Mark’s Maxim states that, “All customers want lower price but none want less value.” If your customers are telling you that your price is too high two things are occurring. They cry high price as a negotiation ploy to get your lowest price. They don’t see the difference your product or services can make for their business because your value proposition is weak, so they balk at your price regardless of how reasonable it is. The next time your customer says, “Your price is too high” don’t routinely believe it. Probe deeper. Engage in dialogue that will get you closer to a sale. Most customers do not have the time or the expertise to make an accurate decision about value, especially when it comes to involved purchase decisions. They need you to bring fresh
sales and leadership team M H M ARK S HOLME
insights, ask the right questions and provide valid business reasons (proof) that you offer the best overall value. Identify the value your customer expects. Then find the difference you can make for your customer and quantify that difference. To win the value sale today requires the ability to persuade customers that you have the best overall value.  Focus on value when price is the hang-up. Watch lost sales turn to wins. Mark Holmes helps companies increase sales, service and employee performance and strengthen leadership effectiveness. Call Mark at 417-883-7434 if you’d like to visit about this article or have a question about his services. Or, drop an email to: Copyright 2015 All rights reserved
Mark@markholmesgroup.com
MarkHolmesGroup  Consultant Board, Inc. P.O. Box 3175  Springfield, MO 65808-3175 USA International: 417.883.7434  Toll-free USA:  800.841.8540 © 2016 Consultant Board, Inc. All rights reserved. Designed by Pro Blog Hub - Professional Blog and Website Creative Specialists

MARK’S INSIGHTS

When Customers

Focus On Price,

Focus On Value

This axiom is most often credited to Warren Buffet: “Price is what you pay, value is what you get.” Price is outgo. Value is the tangible and intangible benefit received.    The exact price we pay depends on many factors like quality, brand reputation, reliability, performance, workmanship, service, support and warranties. Customers understand this. Customers want value, but they also want low prices. To get low prices customers have been known to tell sales reps, “Cut us a deal because we’re going to buy based solely on where we get the lowest price.” But don’t believe it. “What’s the problem with believing that?” It’s just not accurate. Studies indicate that about 95 percent of all purchase decisions are based on factors
sales and leadership team M H M ARK S HOLME
other than price, leaving maybe 5-10 percent of decisions based on price alone. “Do we grasp that the #1 key for landing sales is not price but how we differentiate our value?”  Mark’s Maxim states that, “All customers want lower price but none want less value.” If your customers are telling you that your price is too high two things are occurring. They cry high price as a negotiation ploy to get your lowest price. They don’t see the difference your product or services can make for their business because your value proposition is weak, so they balk at your price regardless of how reasonable it is. The next time your customer says, “Your price is too high” don’t routinely believe it. Probe deeper. Engage in dialogue that will get you closer to a sale. Most customers do not have the time or the expertise to make an accurate decision about value, especially when it comes to involved purchase decisions. They need you to bring fresh insights, ask the right questions and provide valid business reasons (proof) that you offer the best overall value. Identify the value your customer expects. Then find the difference you can make for your customer and quantify that difference. To win the value sale today requires the ability to persuade customers that you have the best overall value.  Focus on value when price is the hang-up. Watch lost sales turn to wins. Mark Holmes helps companies increase sales, service and employee performance and strengthen leadership effectiveness. Call Mark at 417-883-7434 if you’d like to visit about this article or have a question about his services. Or, drop an email to: Copyright 2015 All rights reserved
Mark@markholmesgroup.com