Don’t compete on price.
But if you do, you’d better be the cheapest… and stay the cheapest.
See, when you sell the value based on price, both you and the customer treat the product like a commodity. There’s no relationship, and there’s no loyalty.
Instead, take the consultative approach. When you position yourself as an expert and a true partner with your customers, you sell the value in the advice you offer. And if you do that, your relationship will outlast your price point.
Current Customers = Best Prospects
Your current customers are your best prospects — if you have a relationship. When you know your clients, conversations about other products or services you offer happen naturally. Plus, they’re open to giving referrals because they trust you. But if you’re competing on price, you won’t have a good enough relationship with your customer to expand your wallet share with that business. Plus, they lack the incentive to give you referrals.
Start With the Right Pitch
To avoid selling based on price alone, you need to craft your sales pitch in a way that builds a relationship from the beginning. But how do you do that if the typical customer only cares about three things?
1. What is the product?
2. Why do I need it?
3. How much will it cost?
There’s one other element of a sales pitch that matters: the story. If you want to hold their attention and get them to think the way you want, tell the story and make the sale. Tell them why you’re in business. Then they become involved.
This isn’t a slideshow. This isn’t an informational company history. It’s a way to connect. Think of it like a good movie.
Take our story, for example. Several years ago, I was looking for a CRM solution. Like anyone, I wanted something that would store all my information in one place, keep me from missing a client, and allow me to see data in various ways. So I went out and looked at several solutions. I even liked some. But when I tried them, set them up, and rolled them out to the sales team, they’d just do the same things they’d always done. They would stick to their systems and write down their notes. But now they needed 4-5 hours a week to enter it into the system. We got a lot of garbage in the CRM. The top performers arguably didn’t have time to deal with it, and other people weren’t entering data that’d make them look bad. So I needed to find something different.
I realized CRMs were just built to sell. They were made for IT and marketing people from large companies — because that’s who had the budget for the software. But the people who actually use the CRM daily weren’t considered. When I made a list of what my salespeople needed and what I needed as a manager, I realized nothing did that. So I built CallProof.
We started using it successfully. Then our clients started asking what we were using. They wanted it too. Here we are, 9 years later, with a mature solution that provides thousands of users with a bug-free, simple way to keep track of their sales.
That’s our story. A good customer will relate to that. If I’m selling to an IT or marketing person from a large company, I’m going to tell them a slightly different story to show them how our product meets their needs.
Showing Your Product’s Value
Once a prospect invests in your story, figure out their motivation. If you can understand their goals, you can show them how working with you helps them get there. Do they have a problem you can solve? Can you show them how your solution helps them reach their end goal? If they’re starting to connect with you and you connect to their goals, your product just became much more valuable.
Avoid Prospects Who Only Buy for Price
There are two types of decision-makers: asset owners and asset custodians. Asset owners care about the well-being of the business. As you deal with owners, you’re dealing with the people who have a stake in the success of the company. So you sell to them based on what your product or service means to the company and the bottom line.
Asset custodians are just trying to avoid problems. They’re trying to get their job done and avoid extra work. They’re much more likely to “kick the tires”, so you need to be ready to change the conversation to deal with their main priorities and keep them from focusing solely on price.
Your product is valuable. Don’t cheapen its value by reducing your sales pitch to the bottom line. Instead, sell the total benefit you and your product offer your customers.