Value selling says that customers buy your products and services because they anticipate enjoying a value that they wouldn’t have if they didn’t buy your products and services.
Price is what you ask your customer to pay for your products and services. Value is what the customer thinks the product or service is worth.
In other words, the value is the difference between the price you charge and the benefits the customers perceives they will get.
People Don’t Buy Products, They Buy the Results Your Products and Services Will Give Them
People are willing to pay more for a product if they think it gives them a special or significant value. How do they come to that understanding? That’s your job. You must sell to them in just the right way.
Selling on value, not price, requires a powerful combination of confidence and knowing your products thoroughly. Creating this combination has become more difficult as technology gives consumers greater access to price information and what your competitors are charging. As a result, people who make purchasing decisions primarily on price will instigate a bidding situation between you and your competitors.
Some Suggestions for Adding Value to Your Sales Presentation
When meeting with prospects, don’t allow the conversation to focus on cost.
Provide them with solutions to their cost concerns. Drill down with your questions to determine what prospects find most objectionable price-wise. Is it design cost? The cabinet grade you’re proposing? Is finish or wood species driving cost?
Emphasize your design expertise and how your design experience with give them the kitchen they’ve always wanted.
Thoroughly discuss cabinet features and the benefits these features provide in terms of family time, entertaining, improved cooking efficiency, increased storage.
Be selective in the jobs you quote, Refuse to quote from another designer’s drawings.
Charge a design retainer. People are willing to pay more if they think it gives them a truly special value. The design fee communicates that your time, knowledge and expertise are valuable. Further, it establishes your role as a professional rather than someone providing free advice.
Don’t quote on a job without appliances being selected. You’ll only have to do it again if you do.
Quote more than one cabinet line. Give them options and different price points.
Use previous customers as your future salespeople. Document testimonials from past successes and show them off to increase your credibility.
Sell the value and the benefit of your product and service. By focusing on value, you won’t have to talk about price until your clients are convinced.
Target your Ideal Customer
A mistake salespeople make is that they don’t narrow their target audience and their ideal customer. In addition, they don’t understand that their products aren’t for everyone. Make sure you know exactly who your customer is and aim at them with exact precision.
Consider whether a sales prospect is really worth your time. When you qualify potential clients to see if they are a good candidate to meet your price needs, you won’t waste time talking to people who only want the cheapest deal. Then you need to identify your ideal customer’s problem and n zero in on explaining how your products and services will solve that problem.
Today’s consumers are sophisticated. They understand how to explore price for value. About one-third of consumers are hung up on price, while the other two-thirds are open to hearing your sales pitch. If the customer thinks they will get a lot of benefits for the price they pay, then their perception of value is very high. This is the prospect you’re looking for.
Overcome Their Fears
What scares people? The price of home improvement projects, especially kitchen remodels.
Your prospects may not show it, but if it’s their first time remodeling, the initial price tag will induce panic. In some cases, this results in a lost sale. If you hear “I’ll think about it” or “I’ll get back with you,” that’s code for “this costs too much, I’m out!”
Focusing on the value your product gives to a customer is a way of making sure the price becomes less important. If a customer believes they will get a lot of benefit from your product or service, then price is less of an issue.
Here’s a Few Suggestions for How You Can Raise Your Prices
One. Be better than everyone else. It’s not that hard. The majority of your competitors don’t do a good job, and you can do better. The people who are willing to pay your price want the assurance that you will design their kitchen perfectly, and bend over backward to make it right if you or your suppliers mess up.
Two. Clearly articulate how you’re different and why you’re better in your sales presentation. and in all your marketing. As a professional who provides design and/or remodeling services, you have to distinguish yourself from what your competition offers. And don’t even think you can’t come up with ways to differentiate yourself and your business.
Three. Don’t be afraid to charge more for your products. Selling for high prices is not hard when you have the right products. Don’t be so desperate to sell that you undervalue your product. As searching the web and researching your competitors will show, there is an unlimited amount of competition out there. There will always be someone ready to undercut you. If you sell the low-margin jobs or try to land jobs by being “price competitive,” you won’t have the margins to sustain your company and put profits in your bank account.
Four. Increase your product knowledge. Move beyond a general understanding of your products to a specialized, detailed understanding of how they can be used to solve customer problems and create value for them.
Five. Develop your sales skills. Consider investing in some coaching or training that will help you improve your sales skills. If that’s not possible, focus on the fundamentals: delivering value, being responsive, active listening, asking insightful questions that get to the customer’s problems.
Conclusion
Teach people how much they will benefit, how much your products and services will help them achieve their goals and solve their problems. The more you focus on these values, the less important the price becomes.
Bob Aungst Cabinet Sales is a full-service rep agency with the goal of matching kitchen designers and remodelers with the cabinet manufacturers best suited to their business’ style and clientele. Owner Bob Aungst III represents Brighton Cabinetry, US Cabinet Depot, Integrity Cabinets and StyleCraft Luxury Custom Cabinets.