April 06, 2009

Value Based Selling

Points to consider in value based selling:

1.       A lack of understanding of the real requirements, a failure to diagnose the real reason the client requires a solution. Diagnoses of the real requirements is done with the customer in the room not back in the office with a team of internal people. It should not be rushed. It will take a number of meetings especially in high value sales. Developing value word equations the customer understands and can apply to his or her own business can be effective

 

2.       When selling solutions to complex buying units, people need to understand companies get results and people look for personal wins. The vendor needs to understand the personal win that is going to motivate each member of the buying unit as well as the corporate results. These personal wins can unlock added value that people will pay for

 

3.        Value is about giving an incentive to change, once the incentive is there the customers focus then switches to assuring that the solution being considered can be delivered as promised – they will associate value in the delivery process, project people and tools to deliver – a point often underestimated

 

4.       Value needs to be win win – if it isn’t then delivery and the valued repeat sale will not happen

 

5.       Walking away can be the right thing to do – two of our clients walked away from deals in 2007, the deals were awarded to their competition. The projects were put on hold in 2008 ad our clients were asked to rescue the projects.

 

6.       Value is built across the sales cycle not a the end of it

 

7.       It is very difficult to position your value when responding to RFI’s and RFP’s

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