Selling Against Price

A sales rep dejectedly walked into his manager's office. "My competitor's prices are just too low! You must do something about our prices or we will never penetrate that account like you expect me to."

The manager smiled, picked up a pencil, waved it in the air, and replied "OK, Poof! All products, including yours and all your competitors, are now free. How will your customer now choose a product?"

"I don't know."

"Yes, you do. Think for a moment. How will he now choose a product?" the manager prodded.

Slowly, the rep responded "Well, I guess he will choose the product that best meets his needs."

"And how will he know which product will do that?"

"That's my job, I guess. I have to tell him all the features of the product."

"That's one way. Another way might be to cut back on the number of product features and increase the number of product benefits that you describe. Also you might describe more in depth how a product's feature benefits more aspects of his business and more aspects of his customer's business. Focus more on how your product, your services, and your company truly benefit his real needs."

"That's easier said than done. How do I find out more of his needs?"

"Ask him what he and his customers value the most in such a product and the company that backs such a product. In other words, ask him what he values the most. Capture that vital information, build your entire presentation around those values, and you will be more successful."

"On your next call, only take in a single piece of paper. Tell him your objective this trip is to better understand what he needs and wants, and that you need his help to accomplish this objective. Tell him you will make a list of what he feels are the attributes of his ideal product and supplier. These attributes maybe timely shipping, technical support from the supplier, supplier-supported QA, cooperative marketing support, production line support, 24/7 hotline support, price stability, quantity discounts, internal training, pricing terms, etc. Then ask him to categorize these values as A's, B's, and even C's. Prepare your next call by identifying how your product and services match his 'A values' and then meet or exceed his expectations. Remember that product features enhance perceived costs, while product benefits enhance perceived value. Your customer then will make a buying decision based on value, not on cost."

The next time the sales rep dropped by the manager's office, he said "Wow, that idea really worked. My customer said it was the first time he could remember that someone actually asked what he or she needed, wanted, and valued. I was nervous at first, but we had a great meeting. It felt more like a business conversation than a business presentation. On my subsequent trip, I asked him how he would choose between products if they were all free! He was amazed that I built the entire presentation around what he said, and not around some sales pitch. I got the order! And future business with him looks extremely promising!"

"Congratulations! You are becoming more of a consultative representative. Keep up the good work!"

Bill Gunn's strong background in sales and sales management created a solid foundation for his career in training and development. He has trained hundreds of sales reps in the United States and Canada, written dozens of seminars, and is the author of one book on selling skills and another book on maximizing a company's objectives at trade shows and conventions. He has even created a board game on selling skills for distance learning and reinforcement. He recently co-authored an MBA-level university course on Out-Boarding.