In this post, I am going to show you how to sell anything (and for a great price too!) This means not only making a sale or gaining a new client/customer – but making that sale or winning that contract in the most profitable way possible.
Overview
People often tell me that once they get ‘in front’ of a prospective client, they are pretty good at converting the prospective client into a paying client. The problem is; they just don’t get in front of enough people! If this sounds like you or someone you know, here’s the solution. By the way – forward what I am about to share with you to everyone you know that might find it useful!
If you are finding it hard to sell something, the temptation is often to lower the price, especially during a tough economic climate. This is almost always a REALLY bad idea! Ironically, when we speak with buyers we find that price is not primarily what they base their buying decision on! We find that quality, support, utility and back-up are ranked higher than price.
Before writing this article I held a poll where I asked people, which of the following were most important to them; price, quality or backup & support. Overwhelmingly, price came back as the least important! In fact, there is a lot of data to suggest that lowering prices actually reduces sales.
Price only becomes a hurdle when the cost of something is greater than its perceived value!
To make something sell, you need to make the perceived value of it higher than the asking price. For example, a £100 item with a perceived value of £200 will sell very successfully; however, a £200 product with a perceived value of £100 will really struggle.
The bottom line is that people need to believe they are getting a great bargain. If they do, they will happily spend their money with you.
What is ‘perceived’ value?
Perceived value is the value that someone places in a product or service, based on what they believe it to be worth or their perception of its value is. Whenever you find yourself looking at the price of something and thinking it’s a great deal, it’s because your perceived value of it is higher than the cost.
This is why successful sales and marketing is based around making the perceived value of something appear as high as possible, so that the offering seems like a real bargain when you learn the price.
Sadly, the marketing used by most businesses does very little to increase the perceived value of their products or services (herein called products).
Therefore, these businesses focus on reducing their prices; so that the price matches the low perceived value of their products.
In other words, they end up selling a great product for less than it’s worth – and make far, far fewer sales too.
OK – Enough about how ‘THEY’ sell and market themselves (that’s their problem not ours) Here’s how YOU can sell more than ever before! (I really am too good to you!)
Firstly, focus on the benefits of whatever you are selling and make those benefits sound as valuable and irresistible as possible.
It is not enough to say something generic like ‘our service saves people money’ – you must give an example of how you saved someone a ton of money and then compare the cost of your service to the saving it achieved! For example, when I was marketing my services in the 1990′s, I would send a prospective client my quote; along with a press clipping of how I helped a business triple their turnover in just 120 days – by helping them get the biggest contract in their history! It worked really well, because it showed people the value of my service and made my fee seem an outstanding bargain!
My competitors sent their quote in with a business card and their fingers crossed!
Failing to clearly show the true value of your products in your marketing will cost you a fortune. Back in 2005, I met with an Accountant whose practice was in real trouble. After looking at his marketing material and website, I explained to him that there was no mention anywhere as to the value of what he did; how he could help people pay less tax, make bigger profits and hold onto more of their hard earned money.
Here’s what he replied;
“Jim, if people are too stupid to work out for themselves what an experienced accountant like me can do for their business, that’s their problem!”
“No it’s not” I explained! “It’s very much your problem – because they will take their business elsewhere and you will go broke!” Within 18 months he had lost his business and was working for a former competitor!
Secondly, you need to add ‘bonuses’; things that people will value but which cost little to provide.
For example, I give away a free ebook and free mainland postage and packing to people who buy my Motivation Master Class Audio CD’s. The ebook version of this programme is worth £9.99 and the free postage and packing is saving my customers a further £4 – making the programme exceptional value.
Thirdly, because value is always relative, you need to look at the perceived value and price of what your competitors are offering.
One of the ways a potential client decides what value to attach to your product, is to compare it with what your competitors are offering. You must, therefore, research what your competitors are offering and then make your product more valuable than theirs.
For example, my friend Cheryl works in London as an Estate Agent; specialising in selling homes worth over £1.5 million. The very first thing she does when she takes on a new client is show them around the other homes in their area that are being marketed at the same price. This way, her clients can see what their home is being marketed against – how it measures up against the competition. Cheryl is then able to encourage them to make the improvements required to make their home stand out against its competitors. The end result is that her client’s homes always sell very quickly and for a great price!
Fourthly, review your marketing material.
Take a look at your marketing material, everything from; your sales letters and advertisements to your website, blog and any marketing emails you might use. When you read them, does every sentence and every paragraph pump value into your products and your business? If a potential client reads your marketing, is it going to motivate them to take action, call, email or meet you? Is someone reading your marketing material going to feel compelled to call, meet or email you? If the answer is no, you are losing a fortune in sales.
It is essential to the success of your business that your products are seen as being of exceptional value. Competition has never been greater than it is today PLUS the consumer has never had so much choice. If your marketing is pedestrian in its approach, it is hurting your business so improve it NOW.
Finally, review your sales pitch or presentation.
When you speak with a prospective client, do your words add value to whatever you are selling? Do you identify their problems during your meeting and then sell your product as the answer to these problems? If not, throw your presentation or sales pitch into the bin and start again!
No one wants to meet with you, to be bombarded with a list of benefits and features and then quoted a price or fee. They want you to inspire them, to show them that you have something that they absolutely need! They then need to be certain that you are the best person anywhere to buy it from. Your sales pitch is all about pumping value into your products and your business and then showing the person that you want their custom – not because you are greedy – but because you believe that if they buy from anyone else they will get a worse deal overall.
If you really believe that your products, your service or your business is the best solution for someone, you have a moral obligation to stop them making a mistake! You have an professional obligation to ensure that this person gets to benefit from being one of your highly valued clients.
This message must resonate powerfully through your marketing, your conversations and all your interactions.
Get moving!
Go on – right now, pump the enthusiasm you feel for your product and business into all your marketing and sales messages! Make sure everyone knows how valuable your product is and how much you want to help them. Don’t leave anything up to chance. Tell your prospective clients that you are looking out for them;, that you provide a stunning service and that the only way you can be sure that they will be looked after is if they allow you to service their requirement.
Jim,
However won’t these comments change depending on the nature of the product. Grudge purchases sell because of themselves.
I am just a little confused here, what you pitching for depends on the nature of the good that you are selling.
I think these comments work well only for those products which have a high Perceived Value / benefit for customers.(Cheryl’s example – case in point)
Shriram,
Value is universal. People are ALWAYS attracted to value.
Low value products or services always struggle, EVEN MORE in today’s economy.
You can buy a £14.99 download from my main website and that STILL has to have stacks of value pumped into it to make sure people buy it. Low ticket and high ticket items have to be shown to be of value.
Thanks for the comment.
Jim, excellent advice. I understand selling benefits but needed the reminder. As a professional resume writer, everyone says I should be really busy but it has been quiet lately. I was wondering about changing the pricing levels but my industry leaders have already said don’t do that.
Thanks for the coaching!
Julie,
Thanks for the comment – glad you found the post useful.
You might also find this useful; it’s all about how to set your fees:
http://jimsmarketingblog.com/2008/09/15/how-to-get-your-fees-or-prices-right-in-3-steps/
Hope it helps!
Great post, thanks for sharing.
Just wanted to say this is your best post ever IMHO.
Caliman,
You are welcome.
Graham,
Thanks
Spot on Jim.
Value is everything. Thats why $5 can be expensive for a $2 value item YET an idea which is free could be worth a $million.
We all want value and our customers are exactly the same.
Jim -
Good post.
One successful spin on your strategy, especially in tough economic environements such as today’s, is to define your “Value Proposition” in terms that your client can clearly identify with: Namely – how does your product or service help them make more money?
How does your product or service help your customer make more money???
1) If you don’t understand your customer’s business model well enough to answer the question, then you are not ready for the sales call.
2) If you know the answer, but your pitch doesn’t drive it home from multiple angles, then you need to revise your presentation. Customize it for them.
3) If your product doesn’t deliver enough value to convincingly increase the customer’s profitability, then you need to rethink the concept or your positioning.
4) But once you have a product or service that increasses your customer’s business results, and you’ve convinced yourself and your customer of that fact, then you will approach the sales process with a confidence and a clarity which is almost unbeatable.
Go close that sale!!
Jean-Paul,
Thanks for your your comment.
Jeffrey,
Firstly, I would like to thank you for making such a big contribution to the comments section of the blog.
I look forward to seeing what other’s think of your suggestions.
Thanks again Jeffrey!!
Jim, this is an EXCELLENT article. Very well done. Thank you for writing this.
Sincerely yours in parenting success,
Debra Sale Wendler
http://www.adhdparentingtips.com
A fantastic article!!
This is information I can really use in my business.
Kudos Jim!!
Jim:
Loved this article and will save it as a great reminder.
PERCEPTION is truly the name of the game — at least for someone in my business. In today’s market it makes good sense to use a Virtual Assistant when one considers the overhead savings. That coupled with work quality are the biggest points I have working in my favor.
But, as you said, if worth is not preceived, all the artful language in the world won’t do any good.
Well done.
Hi Jim,
Great article and sound advice. Much appreciated. A simple concept that is often hard to follow through with because people get afraid to “offend” the prospect during the selling process, whether in person or in writing.
Great job friend…
Best,
Jim in NJ
Debra,
Thanks for stopping by the blog and for your positive feedback.
Simon,
Thanks! This blog is all about sharing ‘real-life’ information, which people can put into practice and benefit from.
Karalyn,
Thanks for the comment. You make a few very good points – thanks for sharing them with us.
Jim,
Thanks for your comment and for sharing those ideas – much appreciated.
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Hello Jim, Thanks for this article. I usinthese points in my biz and i am a php/mysql web developer at viswaminfotech selling mlmwebsite and other websites
Jim,
I just wanted to add to your comment about perceived value. I’ve certainly noticed in the past in the industry that I work in (telecommunications) that it is often just perceived as just installing phones and plugging in computers – the value-add from a managed service isn’t noticed (until of course it isn’t there and everything starts going wrong!)
Great post Jim~
You nailed it by focusing on increasing the perceived value of an offer.
A tactical note: once the value has clearly been presented and objections dealt with, it is time to be silent. Being able to sit and wait has been absolutely my best closing tool.
Buyers really appreciate the chance to think it over, and making space for that will be noticed. Try it.
Looking forward to more great posts from you.
I’ve just visited your blog for the first time today and I’m so glad I found it! And the timing couldn’t have been better. I was an exhibitor at a Chamber of Commerce business showcase last night and through my conversations with folks heard the value they perceive in my products. That, in conjunction with your article, was very clarifying about what I really have to offer that is of value and unique and how to better describe it. Thank you!
Whow, your article worked miracles! Somehow I felt I had what it takes, but was unable to articulate it! When I read your post it finally made ‘click’! This will help me to sell my services much better,
thank you very much!
Well said, Jim. Motivates me to get off my backside and walk the talk! You’re absolutely right about ‘perceived value’ – I’m reminded of the saying that people don’t always buy what they need, but they always buy what they want. Nevertheless, important to not shatter people’s perceptions after the sale of course…
[...] and also reassure them that your prices or fees are set within their range. You achieve this by pumping massive value into your services, PLUS showing that people, just like them, are already using and benefiting from your [...]
[...] prospective clients / customers are looking for the best value for money possible. This requires super-effective marketing, as you will need YOUR message to stand out and then convince people, more powerfully than your [...]
[...] fulfilling OUR marketing promises. More than that, we need to constantly look out for new ways to increase the value of our services to the [...]
hi could you please help me with a pitch when calling clients to advertise on plasma screens thats placed around various stores , i would like to know how could i not turn me down but call me over to know more and how do i turn them to advertisers
thanks a lot
i enjoyed reading your advise above
Very true and very well put, Jim.
I’d just add that because value, as you so rightly say, is perceived you cannot tell the prospect the value they will get from buying your product or service.
The skill is in helping them work this out for themselves. Once they understand value for themselves, and can articulate it for themselves, you the seller can understand it too.
Then, if you have flexibility, you can set your price at a level that gives the prospect a huge return on their investment. And if their perceived value of dealing with you is high enough, you will have rarely struck such a profitable deal. That’s WIN-WIN!
David
Thanks for sharing such a fabulous article as always Jim.
In my experience people often find it difficult to identify the true value of their product or service and as a result undervalue themselves by charging too little.
When we work so closely to our business it’s often hard to identify the specifics of what that value is thus making it difficult to define a compelling and irresistible offer. I like to put it another way and ask “What’s the end transformation?” There’s usually some kind of emotional reason behind anything that we purchase. If one can get to the numb of that then we are likely one step closer to making the sale. One might say, “Ok, well, my product gives my client more time and money,” but what’s the ultimate transformation? To watch my kids grow up, take my family on holiday, save my marriage etc, etc… now that’s powerful stuff!
Following that, as David Winch stated, the skill is in helping people work this out for themselves and in my mind, understanding your customer, being able to listen carefully and ask the right questions will open up those transformation for people thus enabling them to see the value.
Keep up the stellar posts Jim!