In sales today, there is a great deal of focus on price, both from the customer and the salesperson. Often when you visit a store or a showroom, the first words out of a salespersons mouth is “I can do you a deal today” or “I can give you a good price”. They offer a discount before finding anything about the customer and what’s motivating them to purchase. Contrary to the belief of many salespeople, price is not always the biggest factor considered by a customer when making a purchase.
Price is almost impossible for businesses to compete with these days, with the amount of heavy discounting that occurs. Alternatively, salespeople’s focus should be on what they do have control over, which is the value they build in the product and the experience they offer the customer, to help differentiate themselves from their competition.
What is the difference between price and value? Price is the amount of money to be paid to purchase something or the amount the customer is asked to pay. Value on the other hand, is what it is worth to the customer. It’s their desirability or, how much they want it.
A buying decision is generally made when the customers’ perceived value is higher than the price. If a customer does not see enough value in the product, they may deem it’s too expensive and raise a price concern. Therefore it is vital the salesperson builds personal value for the customer.
Value is a very personal matter. What is of value or importance to one person is not necessarily the same for someone else. A salesperson must discover what that particular customer values, by asking good research questions and listening for clues as to how they want to benefit from the purchase. Rather than focusing on the features of a product, the salesperson must focus on how the customer will personally benefit from those features. For example; how will their life be improved by the purchase?
Price becomes less of a factor when the salesperson has created a personal need and desire in the customer based on this uncovered information.
If a customer is presented with a ridiculous price, the salesperson might close the transaction today but the ultimate goal is to create customer loyalty. Selling on price generally won’t win a customer’s loyalty, but showing customers why a product is of value to them personally and providing an amazing customer experience is much more likely to.