 Sell the Benefits,Not the Price
by Fred Martel
“If I want to get a job, I have to price it really low. There are lots of guys who sell really low and if I don’t they get the work.” Sound familiar? Is that your attitude? In an article in Selling Power, an on-line newsletter for sales managers, poses the following question:
“Next time reps tell you they won’t win the order unless they can offer the lowest price, sends them to a bike shop to look at helmets. Then ask them which one they would buy – the one that’s on sale for $10 or the sleek, ventilated $150 model that promises it meets all ANSI testing standards and is the same model worn by Lance Armstrong? Our bet is they would buy the $150 model. Why? You need guaranteed protection from your helmet in a crash; you need good ventilation; and if you’re racing you need a good aerodynamic design. All of which are promised by the more expensive model. What you don’t need is a low price. “
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The article goes on to state that customers would LIKE a low price, but what they NEED is something else. The job of the salesman is to determine what they need and then show them how your company can meet those needs. I am reminded of a story from a contractor in another part of the country. He was called in to bid on installing central air. The prospect gave the job to someone else, who was cheaper. Less than a month later he was called back into the customer home – the air conditioning didn’t work.
Two things happened: the job, which was not done correctly, cost the customer more to repair it than the original estimate and the installing contractor was out of business. Many people will tell you that what the customer needs is comfort. Although that is true, they have other needs. For example, you are asking them to enter into a complex buying process. What do they really know about heating, cooling and comfort anyway.
The internet is giving them access to lots of information, but they may not really understand it. So, one thing they need you to provide is guidance. And they need to be able to recognize that you are knowledgeable. They also need you to explain to them in terms they can understand why the low cost provider isn’t always the best provider. The business world is littered with the corpses of the low cost provider. Remember ValuJet? They came in with a big splash, but they aren’t here today. The customer wants stability. They want to know that you will be there tomorrow to help them out with other comfort needs. Arm yourself with the tools and knowledge necessary to sell your customers what they need, and not just what they
want.
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