Predicting Your Value
At least once a month I work with sales account executives who want to increase their closings. They think if they can come up with a new group to sell to, a better argument to overcome objections or offer a discount on their products and services people will flock to them.
If you aren't in sales or are new to the profession, then you are probably saying, "What's wrong with that?" The problem is that these methods look good on the surface but fly against successful sales. They demonstrate a lack of perceived value among prospects and buyers.
When someone says they have fewer sales, they are illustrating a lack of value.
Many people think with a changing and often turbulent economy, that sales are unpredictable. But they really aren't. You can predict success in sales if you simply increase the value people perceive in what you offer. If people value something more, they will pay more. If they value it less; they will pay less.
How can you increase value and sales in a turbulent and unpredictable economy?
1. Find the right audience. Who would buy what you sell in the first place? Most new sales account executives have no idea how to find a following of people who want what they sell. They exhaust their resources in a matter of days, because they don't know how to "prospect" for people who already like or want what they have to offer. Sure, you will sell to people who don't start out wanting what you have, but you can sell far more to people who already do. So how do you find them.
Go to your frequent buyers. Seek out the people who spend the MOST money on your product and services. We all know this:
The best clients to sell are existing happy clients.
People who already spend money on you will tell other people about you. The easiest form of marketing is Word of Mouth. It is also the least expensive. So it makes sense to put your efforts into your most effective method.
Use the 3R's (Referrals, recommendations and reviews). Get your frequent loyal following to work for you. It helps to find out who already likes what you sell and then find more people just like them. Go to the location or demographic you are already popular with and seek more of them.
2. Market the results, not the process. Most people don't care how your product or service will help them or solve their problem; they just want it solved. They don't need to hear the process. They need the help they come to you seeking.
My stepson works for Home Depot. I learned while he was training in their customer service program that Home Depot doesn't sell drill bits; they sell holes. Most people who buy an individual tool or piece of hardware want the results that the purchase will give them. They may want help with how to do it, but trust me they want results from the product. Home Depot sells the results people want.
How are your sales bogged down in describing more information than buyers want? Have you heard the acronym, "TMI?" Is TMI running your sales script?
Too much information will ruin your marketing and sales.
Let people envision life as a result of what you offer, then they will be more likely to spend money on it. "Imagine you riding in your new convertible with the top down on a warm sunny day," sounds a lot better than showing the person how the roof goes up and down.
3. Bundle your offer. Sell multiple items together as a group. Do you know anyone who has their auto insurance with the same company as their home owners insurance? Why?
Everyone likes a bundle.
I learned years ago that more people would buy my higher priced CDs if I included an autographed copy of my bestselling book with each purchase. It increases my sales and actually saves me on shipping when I am selling in person and include the book as a bonus.
Your sales will increase if you add something of extra value to each product or service. What can you "throw in" to make it irresistible? What can you include that will attract people to your business? Did you know that McDonald's is the world's largest toy distributor? They include a toy with every "Happy Meal." And they sell more happy meals as a result of the bundled toy. You will sell more, too.
4. Move on! The first week I started cold-calling a woman named Victoria was rude and hung up on me in a matter of seconds. It made me angry. I knew how to put her in her place. But as I picked up my phone to call her back and royally chew her out a thought occurred to me: I still won't be able to sell to her if I win the argument. It won't make me feel better to get in the last word and still not make money.
Then I thought, "I could be calling at least three other people who aren't rude and might buy from me instead of wasting time on someone who won't buy from me... not matter what I say or do." It was an eye-opening moment for me an changed my sales forever.
So I called more people. I signed my first client that week by not wasting time on people who don't want to buy from me. So I no longer argue with people. I don't try to get in the last word, or make the client see the "errors of their ways."
I have never sold anything to anyone I won an argument with, and I've never bought from anyone who won an argument with me.
Some sales managers will not like what I am about to say, but if you are spending most of your time proving your (or your product's) value to people who don't see it, you have a bigger problem than just handling objections. I don't "handle" objections; I move on... and so should you. You may not win the arguments, but you will sell to people who will be loyal to you and your product.
5. Charge more! You would think this would make sense... if you want to increase your value, then charge more for what you offer. But most people are scared to charge more. They think if you offer a cheaper price you will get more business. You won't.
Raise your prices and you will raise your value!
Do Lexus, Mercedes or BMW offer less priced cars than Ford, Kia or Hyundai? Of course not! They offer higher priced cars and charge more for them. They use the term "luxury" to describe themselves.
Does Apple charge less for its newest iPad or iPhone? No. And people line up around the block the day they come out with the latest models... because if they don't purchase them right away, the price will drop! They are afraid that they might be stuck with a lesser valued item, so they buy NOW, while the price is high.
I work with some great corporations who never discount items. They deliver quality products and services all the time. And they have no problem with pricing them higher. They are proud of the employees and work behind what they offer and they charge accordingly.
Are you afraid to raise prices? A lady told a friend of mine one time that if she doubled her price she would lose half of her clients. My friend smiled and said, "Good. Do the math on that statement." He said if she doubled her price and lost half her clients, she would still have the same total income... and could now market to the people who she already had in her new price range. To increase your value, increase what you charge.
Easy Action Steps: Follow these steps and you will never have to worry about pricing. Spend time increasing the value in your mind, and it will be easier to increase it in the minds of others. Find people who agree with you and sell more.
Jim Mathis, CSP is The Reinvention PRO™, an international Certified Speaking Professional and best-selling author of Reinvention Made Easy: Change Your Strategy, Change Your Results. To subscribe to his free personal and professional development newsletter, please send an email to: subscribe@jimmathis.com with the word SUBSCRIBE in the subject. An electronic copy will be sent out to you every month. For more information on how Jim and his programs can benefit your organization or group, please call 888-688-0220, or visit his web site: www.jimmathis.com. © 2015 J&L Mathis Group, Inc.
