Buying Motives

I realize this isn't a common point of view, but I've learned it the hard way and believe in it. By assuming cost savings is a probable issue, then you're setting a buyer up to use price as a negotiable factor. If instead, you focus on the value of what you're selling, then the buyer is more likely to embrace your product or service for its value.

Of course, one should ALWAYS be ready for the "Can't we do better on the price" objection, but I see no reason to give the buyer that open door right from the start by assuming cost savings is a probable motivator.

I know this goes against how we think, which is driven by human nature. That's because most of us think as if we were the buyer, and what buyer doesn't want to save money. However, as salespeople, if we focus on the value of what we're selling, we immediately validate that value, as opposed to giving in on price, which devalues what we're selling.

In fact, when a prospect balks about price, instead of just simply lowering the price for what I'm selling, I will change the type of service he or she is looking at to meet a lower price. This maintains the value of what we do. Of course, this is the last course of action, because at least half the time, when price becomes an "objection" and I focus on the value they're getting for that price, the objection is overcome without having to lower the price.

I guarantee any experience salesperson will feel uncomfortable with this at first. But everyone I know who sells value instead of lowers price agrees it's great direction. Additionally, you build respect with your client and word of mouth does wonders.

On a related note, NYC Mayor Michael Bloomburg was first famous for creating and running Bloomburg Financial to the multi-national powerhouse status it is now. His philosophy on pricing is fairly well-known. He believes if a product or service is NOT selling well.... Raise the price!!!! This will increase its value in the eyes of potential buyers.

The Price vs. Value issue needs to be handled before you spend any time with a prospect. We deal with it on the phone, right after we set the appointment - like this.

"The tuition for the ten salespeople your want to train will be between $15,000 and $25,000. Are prepared to pay within that range for sales training?"

If the prospect does not say "Yes," we cancel the appointment.

Quote:

Originally Posted by JacquesWerth

The Price vs. Value issue needs to be handled before you spend any time with a prospect. We deal with it on the phone, right after we set the appointment - like this.

"The tuition for the ten salespeople your want to train will be between $15,000 and $25,000. Are prepared to pay within that range for sales training?"

If the prospect does not say "Yes," we cancel the appointment.

The issue with this is I would automatically say no, because you're asking me if I want to spend 15 to 25k of my company's money. If, instead, I was first convinced that the value of your sales training would result in my company earning at least that because of the increased production of my salespeople, THEN I might be inclined to say yes.

So you would have lost my sale on the telephone, simply because you made it about price, not about value.

Some thoughts and pennies worth:

In depth selling needs deep thought and you need to ask yourself "Am I am apeing the competiton [and just about everyone else] with my savings you will make approach. For years we've all been pushing the savings aspect and saving benefits - so much so that its out of date, mundane, not listened to and does not generate any great interest. So I want you to to try this:

Mr Mrs John Doe, I cannot promise you that with this product you will save a penny piece [laugh] in fact quite the opposite, I know there's other companies out there saying you will save money, that it will pay for itself, but whether they really mean it or not I don't honestly know. My advice is too ignore the savings if any, to ignore any savings benefits you might make, and to look at this product from the point of view do you want it, will its serves its purpose and will it enhance your home or lifestyle in any way. It is good vlaue, it is the market leader and ....................................... ...............

* Please bear in mind clients can only take in and remember so much, they can be sound asleep to what you are saying, they can be thinking I wish he/ her will leave, so you need to repeat the important messagesa TWICE, meaning twice in another of way.
Another thing find something different to say, be highly original, and try and understand that Home Improvement reps and real estate staff are all saying virtualy the same thing, so you need to original to be heard. Within reason you can play act and exaggerate your behaviour, providing you keep a smile or joke humming outs its tune.

Study Time: Watch carefully the Three Stooges, or Stan and Laurel and take a stride from their outrageous but highly acceptable behaviour. Watch these great stars in action. It might help you to loosen up and relax.

Quote:

Originally Posted by Coda1108

The issue with this is I would automatically say no, because you're asking me if I want to spend 15 to 25k of my company's money. If, instead, I was first convinced that the value of your sales training would result in my company earning at least that because of the increased production of my salespeople, THEN I might be inclined to say yes.

So you would have lost my sale on the telephone, simply because you made it about price, not about value.

I would have lost nothing. If you don't have the need, the want, and the authority to spend what we charge for sales training, you are a very low probability prospect for our company.

Convincing prospects of the value of your products and services is a very difficult way to earn a living. Finding prospects who immediately recognize the value, as soon as they hear your prospecting offer, is an easy path to successful sales.

One of the biggest mistakes people in sales and marketing make is to assume that how they believe they would react is the norm. The High Probability Selling process is based on statistically validated practices, not on seemingly logical arguments.

Here's an hand grenade which might raise a few highbrows:

Some people cannot say No. Some people buy from you because they like you, or want to impress you. or want you to be impressed by them. Some people have just had a windfall, received a large legacy, sold a property, or have had a good deal, and they want to spend, spend, spend. And some women punish their husband for his past indiscretions by blowing in his cash, or raiding the family bank account. It all happens.

Now here's the hand-grenade out of 100 sales calls, its my guess that 12.5% of our prospects come under this category, that no selling other than making a good impression is involved. So when we talk about conversion rates we need to deduct this figure. A 32.5% conversion rate is in actual fact just 20%. Another way of looking at this is "with all our sales skills we have added just a 20% success factor to the sale. Another way of analysing this is if you can find a cheap abundnace of leads - you'll never starve.

Quote:

Originally Posted by JacquesWerth

I would have lost nothing. If you don't have the need, the want, and the authority to spend what we charge for sales training, you are a very low probability prospect for our company.

Convincing prospects of the value of your products and services is a very difficult way to earn a living. Finding prospects who immediately recognize the value, as soon as they hear your prospecting offer, is an easy path to successful sales.

One of the biggest mistakes people in sales and marketing make is to assume that how they believe they would react is the norm. The High Probability Selling process is based on statistically validated practices, not on seemingly logical arguments.

Perhaps we should simply agree to disagree on this one. I imagine part of why has to do with differences in what we sell, and whom we sell to. In my case it's strictly B2B, and the prospects I deal with are always the owners or top mgt. of their businesses, so they're already in the position to recognize the value.

Quote:

Originally Posted by Coda1108

Perhaps we should simply agree to disagree on this one. I imagine part of why has to do with differences in what we sell, and whom we sell to. In my case it's strictly B2B, and the prospects I deal with are always the owners or top mgt. of their businesses, so they're already in the position to recognize the value.

I agree; let's agree to disagree.

However, about 70 percent of our revenues are from B2B top management. Therefore, that is not a factor in our disagreement.

Quote:

Originally Posted by JacquesWerth

I would have lost nothing. If you don't have the need, the want, and the authority to spend what we charge for sales training, you are a very low probability prospect for our company.

I guess what's throwing me off is why you feel this is the case. What I mean is that I may have the need, want and authority to spend five times what you charge.... IF the value of what you do brings my company at least that much benefit.

It doesn't change the fact that if the first bit of information you bring me on the telephone is:

"The tuition for the ten salespeople you want to train will be between $15,000 and $25,000. Are you prepared to pay within that range for sales training?"

then I will most likely say no. NOT because I don't want to spend that kind of money, but because if you're selling me sales training, and you haven't explained the value of your training before talking about price, then you didn't take the time to understand my business.... Which makes me question what you'd be teaching my sales staff. The problem I have with this is that you're assuming my "NO" is because I don't want to, or can't spend the money. That's not the case.... It's just that you're selling sales training in a way that I would never want MY salespeople to use.

Also, I'm curious why you would first make an appointment, then ask this question and cancel the appointment if you don't like the answer. I'm not trying to be a hard-a** here, I'm just surprised to find out that these techniques are still used, let alone taught.

Just on a related note, I was once approached by someone selling sales training, and wanted to charge $1,200 per person for a particular program. He immediately said he'd drop the price to $900 per person. That made me wonder about the value. When I turned him down, he always assumed price was the problem. Meanwhile, instead, I paid to have sales training elsewhere for $1,800 per person, because I understood the value of that training was compensatory with what I was paying. So this isn't just me playing devils advocate... it really happened to me, and I guess why I seem so passionate about this thread.

Settle down men, now open up your desks and get your experiences that have happened to me books out and lets study Codas problem:

When you speak to clients you need to be aware that he / her are anwering every question you pose with an UNSPOKEN ANSWER. At all times they are having quite a good conversation with themselves. So when you speak about savings - they are saying to themselves; "I know, I know I have to spend $5000, in order to save $340.00. He / her, then decide against you. So the savings approach needs to be handled with great care. It might be best to let the client raise the topic of savings, or leave it to his commonsense, or idly mention "that Mr Woolworth was very impressed with the savings he made", if you analyse this Mr Woolworth INSERT, you can can appreciate how diplomatic it is, what I like is it keeps you out of danger of initiating the wrong chain of thought and keeps the client on your Paradise Island.

*Did you notice how when Imentioned Mr Woolworth you started thinking about chain-stores. Thats the effect we have with words.

Buying Motives

Sales Interview Forum