Making sales and profits are the most basic objectives of starting a store, a servicing company, or just about any business. For this reason, loads of selling methods and strategies have been discovered to help sales reps bring close more sales and generate more revenue to the firm. However, most sales strategies center around selling value to the prospective customer or just focusing on working out a competitive price. They both seem like two very great options, but in fact, they yield very contrasting results.
WHY IT SHOULDN’T BE PRICE SELLING
Basing your selling process off offering your customers a competitive price isn’t going to shake off your competition like value selling will. A perfect example of this scenario is when a similar store across the street or on the internet sells same stuff but at a slightly lower price than you offer. The obvious course of action for customers here will be to take advantage of the cheaper option. This is ultimately going to force your hand into moderating your prices or pray that you have enough loyal customers to make sales to.
One more reason why it shouldn’t be price selling is because customers don’t get to feel attached to the product they are about to purchase. This is just the perfect recipe for abandoned carts (mostly on online stores) because customers have to assume the value of the product to themselves rather than being reassured by a sales rep of its value. With price selling, there’s only an amount of money you can get a prospective customer to pay for stuff when they are not sure of its value. So, if the price looks too high they may just say, “I don’t even need that” and walk away.
WHY IT SHOULD BE VALUE SELLING
Basing your selling process on selling value offers you endless benefits. A perfect example here is the fact that everyone buys cars. Cars are expensive but everyone knows the value of owning a car so, the cash just seems to roll out without long periods of decision making. With regards to a rival store by the corner who has more attractive pricing than you, only value selling can get you in front of that business.
Ensure that your prospective customer admits to wanting quality as much as a competitive price by asking questions like, “are you very concerned about spending as little as possible, or do you also care about getting quality?”. Move on from here and if they do refer to the store with more attractive prices, do not hesitate to gently recall their decision to purchase quality (which you will guarantee) by saying stuff like, “I’m sorry, I thought you wanted superior quality as much as pricing”.
If a customer does try to bend your hand into offering same price as a similar store, even though you can be flexible with the pricing, avoid doing that at all cost. Stand your ground about your products being quality. There is the good old statement too, “do you want to buy this now and then a year later again, or do you just want to buy this and use it for good?”.
All professional sales personnel must realize the difference between both selling concepts and know exactly what it takes.