Selling Value Over Price – The Key to Sales Growth and Profits

Whether you call it “value-based” or “benefits-based” selling, the concept is the same: selling value is more likely to close the sale and protect profits than focusing on price.

“Price is what you pay, value is what you receive.” – Warren Buffett

We recently spoke of the need for creativitywhen selling in today’s volatile markets. This included concepts such as creating a sales pitch that is solution-focused, value-driven, and creatively tailored to the needs of each client or prospect. That is fine as far as it goes but, what do we mean by value-based selling?

“Value-based selling is the approach of highlighting the measurable business values your product or service brings to a customer. It is about finding a match between your client’s needs and your product’s benefits. Value-based selling means putting the customer’s needs above your own revenue, helping them become more interested in your product. The core principle of this technique is to think of your prospect’s problems and desires [before your own].” (NetHunt.com)

This is not some sort of misguided sense of altruism where you sacrifice the goals you’ve set for your business to the needs of your prospects. On the contrary, you should prioritize the satisfaction of their desires as the means of making the sale. If you follow this approach, profit and sales growth will take care of themselves.

Give Your Prospects a Reason to Buy

Would you like to raise your prices while increasing the odds of conversions? That’s impossible, right?

“In the 1970s, Harvard psychologist Ellen Langer conducted experiments about compliance, trying to discover what makes people agree to a request. In short, Langer’s students asked people to cut in a line for a photocopier with three different requests. A straightforward request was honored 60% of the time, but Langer found that adding a reason for the request increased the compliance rate to 95%.”

This proves that when you give people a reason to buy, they become more receptive when you ask for the sale. By their nature, human beings are predisposed to look for a reason to agree to your requests.

This also explains how the best salespeople on the planet succeed: they give their clients a reason to buy – and they ask for the sale. Further, because repeat clients have already said “Yes” once (compliance), they are far more likely to do so again.

The beauty of this approach is that it is not restricted to particular products or services. That is, selling value works across all markets and industries. If you find yourself struggling to implement a benefits-based sales strategy, Ted is available for sales coaching and business consulting to the trade. Simply… Get in touch with TD Fall today.