Price and Value Are Not the Same

My Grandfather used to say “Price without quality is waste.” What he meant by that of course was that getting a good price on a bad or wrong product was not a good deal.

 

He ran a small grocery store for nearly 50 years. He started when all grocery stores were small and it was his philosophy on price vs value that allowed him to survive when the “corner stores” were being devoured by the Supermarkets. 

 

He knew that “price” was simply what people paid and that “value” was what they received in return. When people were convinced that there was additional value to be had they would willingly pay an additional price. 

 

Good organizations and great salespeople know that same thing. They do not sell on price, they instead sell the value that their product or service offers their customer. 

 

To be sure there are some people who buy almost solely on price. Most often these buyers won’t be tempted by value because they are relatively short-term thinkers. A common refrain is “I can buy two of these for what I’d pay for one of those.” That could be true but what they fail to see is that the “one” will perhaps last 4 times longer than the “two.” 

 

But here’s another reason so many people seem to buy on price: poor salespeople cause them to make that mistake. 

 

Poor salespeople do not have the ability to communicate the value their product provides the customer. When a poor salesperson, or more likely, a poorly prepared salesperson hears their price is too high they immediately begin thinking they need to discount their price to earn the business. What they don’t understand is that they aren’t “earning” anything by accepting less for their product or service, they are merely buying a sale. 

 

When a salesperson buys a sale it’s likely everybody loses. The salesperson and their company obviously loses; they have built value into the product and they are not receiving the money they need to sustain that value. 

 

But here’s a surprise; the customer likely loses too. They lose because the product or service that they want will eventually go away. If it doesn’t go away the service that came with it will decline and they will really need the service because the value and quality in that product will almost certainly decrease over time. 

 

When I was just a kid I’d be at the Farmer’s Market at 4:00am on Saturday morning with my Grandfather to hand select only the finest, freshest fruits and vegetables that our customers would buy later that day. 

 

I suppose that most people don’t remember those days but when I walk into the produce area of my local supermarket today all I see is the stuff we wouldn’t touch back then. Today if you want truly high quality fruits and vegetables you either go to a speciality market or you go directly to the Farmer’s Market yourself…and you pay more, especially at the specialty markets,…because you see value in the quality. 

 

It turns out, price without quality IS waste, maybe not a complete waste but you’re certainly not getting what you pay for.

 

If you’re a salesperson today then learn the difference between price and value. Understand that you’re doing your customer a disservice by not explaining the value your product or service provides to them.

 

They may feel lucky getting a good price today but the sting of poor quality far outlasts that lucky feeling. 


Your customers, and most every bit of research supports this, your customers would rather pay a fair price for true quality than receive a low price on an inferior product. When you understand that absolute fact then you understand what you need to know to actually earn a customer’s business.

What Are You Selling?

In the factory we make cosmetics; in the drugstore we sell hope. – Charles Revson

Charles Revson, the founder of Revlon Cosmetics, was not a well liked man. 

He was so offensive in fact that vendors often refused to do business with him. But in spite of his personality he still managed to build a multi-billion dollar cosmetic empire.

That’s because he knew what he was selling – and it wasn’t cosmetics.

His quote above said it all. His ads sold hope by using most of the ad’s space on images of beautiful movie stars and glamorous models. The add copy made bigly promises of instant beauty with nearly no effort. He understood that nobody really wanted cosmetics, what they wanted was the beauty. So that’s what he sold.

I remember one of my first sales managers telling me that the best salespeople sell verbs, not nouns. When it became obvious that I didn’t understand what he meant he clarified it by saying they don’t sell the steak, they sell the sizzle.

Through the years I’ve come to understand that the best salespeople don’t sell their product, they sell what their product can do for a prospect. 

The challenge here is really two-fold. First you have to be selling a product that benefits someone. Then you have to find that someone it benefits and show them how it helps them.

By the way, if you are trying to sell a product without benefits then you need to find another product. If your product is the equivalent of an artificial appendix then it may work great but finding a market for it will be nearly impossible.

If you want to sell more next year then don’t sell what you’re selling, sell what people are buying. Don’t sell what your product is, sell what it does and most importantly sell “why” it does it.

Develop the mindset of helping your customer, not just making the sale. The very best sales professionals know that the more they help the more they sell. The very best sales professionals are passionate and enthusiastic about how their product or service helps a customer and they pass that enthusiasm to their prospects.

Just remember, people will seldom actually buy your product, they will buy what it does….for them.

If You Want it Then Ask

My mom was as special a person as you could ever meet. She was an amazingly compassionate woman who would go way out of her way to help just about anyone. Whatever caring nature I have surely came from her.

What my mom wouldn’t do was ask….for anything. She would however hint. She was world class at hinting about what she wanted. Throughout her life she never had a drivers license. If she needed, or wanted to go somewhere she would never ask…but she would drop some rather straightforward hints.

When I received my license I became an instant target of her hints. She would say “it sure would be nice if someone would drive me to the mall.” Of course at first I would jump at the chance but after a while I must admit it got kinda old. 

I asked her on more than one occasion why she just didn’t ask for a ride and she would always answer that she didn’t want to be a bother. (It would have been impossible for her to be a bother but I guess she didn’t get that)

Later in life I learned there were a lot of people like my mom in that regard, they don’t want to be a bother either and they also think “asking” is a bother. Most unfortunately some of these people are salespeople. 

Imagine a salesperson thinking it’s a bother to ask a prospect for the order. Those salespeople are greatly limiting their success. 

Here is a simply sales fact: salespeople who have earned the right to ask for the order tend to get what they ask for. Even if they have earned the right to ask for the order if they don’t ask they most often don’t get the order either.

If you’re the type of salesperson who just asks for the order without earning the right to do so then I’d agree, you are a bother to your prospects. But if you’ve done your homework by asking the right questions to determine whether your product or service benefits the customer, and you’ve determined that it does, then by all means ASK. Ask because you have earned the right and asking for the order is the logical conclusion to a professional sales presentation. 

Your prospects almost certainly expect you to ask. In fact the research shows many of them are just waiting for you to ask so they can say yes. All you need to do to get that yes is ask but if you don’t ask then the yes often never comes. 

I don’t know why prospects behave that way but I know I too behave that way when I’m the prospect. All I would need to say yes is the simple nudge of an order asking question. Without the question my hesitation remains.

One final point, when asking for an order don’t beat around the bush. “What do you think” is not an order asking question and neither is “well let me know what you decide.” 

If you’ve earned the right to ask for the order and you’re certain that your product or service will solve a prospect’s problem or provide a benefit they are looking for then ask. Ask by saying something like “may I have your order” or “may I have your business.” Just like that, straight out!

It is the way true sales professionals do it.

The Gift of Listen

As far back as I can remember there has been a saying that good salespeople have the gift of gab. 

For the last 30 years or so I’ve known that saying to be utterly false. Good salespeople, actually great salespeople, truly professional salespeople, don’t have the gift of gab, they have the gift of listen. 

You’ll never hear a truly professional salesperson say that they “talked” anyone into doing anything. The best salespeople actually listen far more than they talk. They  don’t want to sell people stuff that they don’t need. They want to help them buy products and services that help their customer receive a real benefit in return. 

Great salespeople ask great questions of their customers knowing full well that if they ask the right questions what follows are honest answers that will help them help their customer.

Once they ask great questions then they listen and they don’t just listen to respond, they listen to understand. They linger on the words of their customer until they fully understand the needs and wants of their customer. If for any reason they don’t fully understand they will ask more questions until they do. What they never do is guess. They don’t guess at what their customer might need or what they might want, they ask great questions and then they listen until they understand.

They listen as if that particular customer is the only customer in the world because they know that, in that moment, they are in fact the only customer that matters. 

If you want to know how you measure up to the best sales professionals in the world consider this: the best sales professionals listen more than twice as much as they talk. 70% of their interactions with a customer are invested in listening and only 30% are spent talking. For average salespeople those percentages are just about reversed. 

You will never learn how to help your customer by talking to them, talking just starts the communications process. Listening to your customer helps you learn how to help them, listening completes the communications process.

So… are you listening yet?

 

Don’t Close That Sale!

Salespeople need to sell, that much is certain. In business nothing much happens until somebody sells something. That’s one reason I have so much respect for professional salespeople, they are the engine that drives much of a company’s success.

Please note that I said I have much respect for PROFESSIONAL salespeople. The hacks out there who will do anything to separate a prospect from their money… not so much. 

If you’ve been is sales for any length of time you’ve likely heard the old axiom known as ABC or  “Always be closing.” That little sentiment has ruined many sales careers. I have a better one, it not only lengthens sales careers it tends to make them highly profitable as well. 

Here’s mine: NBC or NEVER be closing. That’s right, NEVER! In case you’re confused let me repeat that in a more succinct way… NEVER close a sale, never, never, never!

Salespeople who live with a goal of closing a sale, or closing business or closing a deal are looking at the sales process exactly the opposite of how their prospect looks at the buying process. 

Limited salespeople believe that when the prospect says yes the deal is done. The prospect believes that when they say yes the deal, and the relationship, is just beginning. 

The term “closing” is one of the most negative and limiting words in sales. It says something is over, done with, and it’s time to move on. If you’re purely a transactional salespeople who will never need or want a repeat customer then go ahead and close. 

If you’re a sales professional who wants a long-term career in sales, with lots of returning customers and golden referrals then don’t think of “closing” the sale. Think instead of “earning” the customer’s business and opening a new, mutually beneficial relationship. I absolutely want you to ask for the order but only after you’ve earned the right. You earn the right to ask for the order by determining how your product or service can help your prospect and then presenting a solution that makes sense to them.

That change in mindset will change the way you sell. It will change the way your prospect looks at you. It will change your outlook on what you do for a living. You’ll no longer have a sales “job” you’ll have a career in sales. 

You’ll no longer simply be chasing the deal, you’ll be searching for solutions that will help your prospects and customers reach their goals. You’ll enjoy what you do for a living far more than your “closing” colleagues.

Oh and one more thing… you’ll sell more and if you’re compensated on your results you’ll earn more money too!

 

Did You Ask?

Salespeople get what they ask for! If I had a dollar for every time I’ve said that I would probably be writing this from a beach somewhere in the Caribbean. That salespeople get what they ask for isn’t always true but it’s true far more often than it is not. 

Salespeople who consistently ask for the order will nearly double or even triple their closing percentages. Just by asking for the order!

Early in my sales career I discovered that an incredibly high percentage of sales calls ended without the sales person ever really asking for the  order. One day upon returning to the office from a sales call my sales manager asked me “if I asked?” I answered “did I ask what?” He said, “did you ask for the order?” 

My answer was of course I did, I always did. So he asks me how I asked, what words did I actually use to ask for the order. When I hesitated a bit he knew he had me. When I said I asked the customer “what do you think?” he just smiled and said that next time I should really ask. 

I learned through the years that questions like “what do you think” and “how does it sound” are not order asking questions. They are flimsy substitutes that salespeople use when they don’t have the confidence required to ask a real order asking question. 

A real order asking question is one that requires a yes or no answer. They are closed-ended questions that leave no doubt as to the intentions of the prospect, they will either be doing business with you or not. 

Good salespeople always ask for the order. Great salespeople know when to ask. 

Great salespeople earn the right to ask for the order by working with their prospect to determine how and IF their product or service will actually help the customer. They ask a ton of focused questions that help their prospect see the fit between the product and their situation. 

When the salesperson has helped the customer see the benefits of their product and how it will help them, then they have earned the right to ask for the order and ask is what they do. 

They ask by saying something like “may I have your business?” They ask directly. They wait for a yes or no before they say anything else. They get the order.

Even if you’re only a good salesperson and aren’t sure what questions to ask, even if you’re not 100% knowledgeable about your product or service, always asking for the order will increase your sales. 

If you don’t believe me then prove me wrong by asking, it’s the only way you’ll ever know for sure. 

How the Best Salespeople Sell – Part Two

It has long been said that the best salespeople have the gift of gab. It has also long been dead wrong. The best salespeople in fact have the gift of listening. They listen well, very well.

The best salespeople, and the best communicators in general, listen to understand rather than just listening to respond. They listen with all their senses and they listen with their heart. They use their empathy skills to focus not only on what was said but what was actually meant. 

The best salespeople do not “filter” what was said through their own biases or life lens. They accept what was said and don’t simply dismiss the things they don’t want to hear. When speaking with anyone they give that person one of the greatest signs of respect that a person can offer, their full attention. 

The best salespeople ask the best questions and that is not a coincidence. They know what they don’t know and they know that lack of information is a real challenge for a professional salesperson. They also know that challenge is small when compared with what they do know that isn’t so…. misinformation or just plain wrong information, when accepted as fact, will kill salesperson’s chance to really help a prospect and earn their business.

The best salespeople ask lots of questions, particularly open ended questions and they allow the prospect time to think about an answer. They are not afraid of a little silence as the customer searches for an answer. They know that if a prospect or customer can instantly answer every question then they probably aren’t asking meaningful enough questions to uncover real wants and needs. Without understanding those wants and needs a professional salesperson knows their odds of earning a customer’s business go way way down.

The best salespeople seldom discuss price without also discussing value. They believe in the value their product or service provides to the customer. They are skilled at using the information the customer provided when answering questions to help the customer understand and see the value too. When having the price/value discussion the best salespeople do not overstate, exaggerate or lie. EVER!

The best salespeople accept personal responsibility for a lost sale. They work to discover their weakness or the weakness of their offering and then they work to improve it. They work; the best salespeople simply put more effort into getting the results that they want. They know that sales is either the lowest paying easy job they will ever have or the most challenging highest paying job they could ever want. They know that everyday both options are a choice and they choose the challenge and accept the high compensation that comes with it.

They best salespeople hate to lose and they are excellent at hiding that fact. They don’t blame the prospect for their decision to go elsewhere and they don’t rip on the competition. They don’t stop calling on “lost” accounts, instead redoubling their efforts to earn the business back. 

Low performing salespeople will never admit to being outsold but the best salespeople know they can be outsold by other “best” salespeople at any time. They relish that competition and use it to strengthen their resolve and push themselves to constantly improve their product knowledge and skills. 

The best salespeople love the profession of selling and respect it with integrity and high ethical standards. Their goal is not so much to sell as it is to help their customer buy. They know that by doing the right things right the outcome will more times then not be right as well. 

The best salespeople do the right things right. How many of these things do you do right each day? If you were on trial, charged with being a “best” salesperson, would there be enough evidence to convict you?

If not then start building your case today. You can become a best salesperson any time you wish…. Simply do the right things right.