This is a great video to show at your next sales meeting!
The reality is too many sales reps are only effective winning business when they’re the lowest price. But this level of selling (and lower profit margins) are just not sustainable in today’s markets of aggressive competitors and tighter profit margins.
It’s a real simple job description…The job of a salesperson is to communicate such a differential in value that the customer will buy from you even when you have a higher price. The more of a differential in value you can prove, the more of a differential in price you can charge and still win the business.
You and your company still need to be within a reasonable pricing range compared to your competitors. If you’re 25% or 30% more expensive, you’re likely not going to win any business. But 5% higher can usually work if and when you can communicate the value and payback your customer will receive because of the quality and uniqueness you can offer.
Today’s video discusses this problem of only winning business when you’re the lowest price, and the importance of shifting to winning business based on a higher-priced, but lower total cost solution. It’s a great way to sell more…and at a higher profit margin.