The world is changing.
People in sales roles always worry about asking too much money for their products or services. They are concerned that no matter strong their offer is, the prospect will fixate on cost and only buy on price. Because that has been true almost forever, they fight anyone in their company who tells them the world has changed. But the world is changing! Sellers are now selling value, and buyers are buying value.
Selling Value
In the B2B world, and to a lesser extent in the B2C space, buyers and sellers are learning to succeed by buying and selling value. And the factor driving purchase decisions is the net cash gained. Let me explain:
Total Benefit ($) – Total Costs ($) = Net Cash Gained = Value
For this calculation and a calculation of ROI (for the CFO) to be meaningful, it should be based on your customer’s data or data that the customer will agree with. When you explain the calculation to your customer, go through every assumption and calculation and ask, “Does this make sense to you?” If there is complete agreement, move to the next line in the analysis. If there is disagreement, then (politely) determine the number the buyer will accept. If that response makes sense to you, then change your calculation. If you disagree, ask for more backup data or time to talk with those who did the math. At the end of this process, you and the prospect should be able to agree on the Net Cash Gained and the ROI.
Sometimes the savings are so significant that you want to factor them down to make your quote look “more believable.” Could you not do it? The calculations are based on your customer’s data and have her agreement, so messing with the numbers says, “I don’t believe you know what you are talking about.” Let the facts speak for themselves.
Sometimes the savings are not “great.” That is when to ask about making the opportunity larger, smaller, or longer term. That give and take is all part of a negotiation between two professionals to arrive at a deal where both sides are winners. Remember, this is what today’s professional selling of products or services is all about. Both parties should aim to strike a mutually good deal so that you can move on to the next opportunity.
As usual – Good Selling!
About Middlesex Consulting
Middlesex Consulting is an experienced team of professionals with the primary goal of helping capital equipment companies create more value for their clients and stakeholders. Middlesex Consulting continues to provide superior solutions to meet the needs of its clients by focusing on our strengths in Services, Manufacturing, Customer Experience, and Engineering. If you want to learn more about how we can help your organization create more value for your customers, please contact us or check out some of our free articles and white papers here.