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Posts Tagged ‘value in sales’

Would you pay $20,000 for an engine (in this case a rotary one) for a plane that costs $3,000?  That answer all depends on this one word – value.

For value is just simply defined as worth.  What is something worth to you determines its value in sales.  In some cases that value is priceless.  I personally witnessed the value of a $2,200 30 minute airplane ride this past week.

No, it wasn’t me because I would prefer to be riding in the saddle of an  easy lopping Arabian instead of being strapped into the second seat of the only P51 dual controlled flying pursuit airplane with over 1,800 horsepower. (Note: This airplane is part of the Wings of Freedom National Tour sponsored by The Collings Foundation of Stow, MA.)

Credit: Collings Foundation

One of the riders was a WWII veteran pilot who had flown 94 missions between the P40 (Flying Tigers) and the P51 (Mustang) in the Pacific Theatre. After listening to some of his stories including orders were not opened until they were 500 miles from the California coastline to other pilots not knowing where New Guinea was, I watched him climb into his memories of yesteryear.  Then 30 minutes later, I watched him climb out and saw the utter joy in his face.  For him the $2,200 was priceless and allowed him possibly the last time he will physically connect with experiences (he was able to actually fly the plane) and memories of over 60 years ago. (Note:  Given this plane is valued at $1,000,000 and the plane’s engine needs to be completely overhauled after flying a specific number of hours to the cost of $750,000 helps to understand the $2,200 for a 30 minute flight )

Value in sales and your ability as a salesperson, be you a small business owner, an entrepreneur or a C Suite executive, to demonstrate that value begins truly before you have the opportunity to share your products or services. Your challenge is to determine the worth of you to your potential customers (a.k.a. prospects).  For they are truly buying both you and your products and services.  Value in sales is a packaged deal and is the deal breaker contrary to what many think that cost or price is what keeps them from earning the sale or closing the deal.

This leads to this obvious two part question:

What value do you bring when you meet with that potential customer for each of those five to 12 times before you earn the sale? Sales Training Coaching Tip:  80% of all sales happen between the 5th and 12th contacts.

What value do your products or services being to that potential customer? Sales Training Coaching Tip:  Features + Benefits = Results determine Value based upon the buyer’s decision making process because what one person finds of value another thinks “$20,000 rotary engine for a $3,000 plane. What is he, nuts?”

Pick up any sales  journal or  skim the plethora of sales blogs or article directories such as Evan Carmichael, Ezine Articles or Sales Bloggers Union, Sales Gravy and the word “value” will pop up much like all those darn summer dandelions. So what in the heck is value anyway and more importantl:

• How do you sell it?
• How does it increase sales?

In a recent interview, Jeff Thull answered a series of questions about how to sell value to sales blogger Geoffrey James.  After reading this article, I now am convinced that in some cases people confuse the word value with  features or benefit.  Sales Training Coaching Tip:  This is one of those articles I would definitely save for future reference.

Being somewhat simplistic in my approach to the sales process, numerous years ago I created a the 3-Rs for business success.

Relationships + Referrals = Revenue

Then boring down:

• Relationships come from Marketing the Product
• Referrals come from Sales or the Prices
• Revenue comes from Sales less expenses or the Profit

This same model can be used to help to explain the 3 levels of value described by Thull:

• Products are the  features – Level I
• Prices are benefits – Level II
• Profit is the Value or Results  – Level III

The critical point beyond understanding the 3 levels of value is that top sales performers have the talent to almost intuitively know how to adapt to each customer’s situation. These folks using Thull’s words, build a “story” that made sense to the prospects  around the value of their solutions specific to long term impact.

If you want to increase sales, consider investing some time to clearly articulate the value your solutions (be them products, services or a combination thereof) bring to your potential qualified customers (a.k.a. prospects).  Additionally, remember that your customers and potential customers are very busy. So you may wish to use Jill Konrath’s SNAP Selling approach to make sure your message resonates with them.