It Pays: Value Based Selling

     Sales & Marketing Management Magazine performed a productivity study on sales approaches. They discovered that using a value-added approach—the solution is more important than price—earned more money. The experience level (entry, mid, or top) did not matter.

     For example, a top-level salesperson using value-added selling versus transaction selling (selling on price, product is a commodity) averaged $38,500 more compensation. An entry-level salesperson using the value-added method earned $6,600 more than his or her transaction counterpart. Is this not sufficient justification for taking a hard look at your sales approach?

     Webster’s defines value as a fair return or equivalent in goods, services, money, utility, or importance. Most of us learned the feature/benefit approach. Are you good at selling value? Do you believe in the value of your products or services? It is the salesperson’s responsibility to communicate value. Salespeople who champion the company and its products or services are better negotiators.

     What resources do you and your company bring to your customer: exceptional service, high quality, dependable delivery, technical expertise, and knowledgeable salespeople? Do your customers believe you are professional and an expert in your field? Are you constantly studying to improve your knowledge, skill, and technique? Resources usually have high value to the customer.

     Your worth to your customer increases when you are considered a business partner. Partners share risk. A partner is someone who really cares. If you care about your customers and prospects, you set yourself apart from most salespeople. Take time to ask questions, listen, and think before you recommend a solution. Avoid asking manipulative, self-serving questions. If you are considered to be a partner, the features, the competition, and the price become less important.

     Customers drown every day in a sea of cost. If you sell the value of your products or services, the cost may be insignificant compared to the headaches, overruns, downtime, and loss of revenue they may face if they don’t buy from you. Selling value will save your customer money, and it could really pay for you!

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