Stop Selling on Price
How You Can Move Past the “Best Price” Model
It’s time to face the facts: selling on price is a lot cause. There will always be someone else out there who can always outsell you.
The sales process today is being driven by commodity buying based on “best price”. But this is a very short-term situation. To grow, you must stop selling on price. To make this shift in the sales model, management must consider revamping their company’s offerings. They need to develop a repeatable sales process to avoid the commodity-based world of buying. Otherwise, the sales staff gets stuck with selling against price.
Here are four factors to consider when honing your sales process:
Most companies today are caught in a downward spiral of lower prices.
One of the most important fundamentals to make the shift in the selling model is to move away from features and benefits selling. The second most important change is to sell higher in the organization to offer impact and business improvements—not necessarily at a better price. The sales people must demonstrate a history of success with case studies to support the impacts your company can have on the prospect or customer to eliminate selling on price.
Purchasing agents are the key to keeping your margins down.
You must stop selling to anyone whose sole purpose is to find the lowest price. They think that the lowest price is best because they are rewarded for this behavior — this is their job and responsibility.
Avoiding the price trap means you work only with the “higher ups”.
The challenge you will face when you move away from purchasing and move up to higher level executive is you must stop selling features and benefits. If you sell the same capabilities and services you will not gain or keep their attention and will be immediately pushed down to purchasing. You must demonstrate performance and impact in dollars to the bottom line.
Making the shift to higher margin improvement requires you offer something different.
No. 1 is differentiation of your product or service. It’s what truly makes you different than the competition. Why should you become your prospect’s new supplier or service company?
Setting commodity pricing and managing sales in today’s world calls for a new approach.