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The Relationship Between Risk, Value and Price – Know the Implications

The Relationship Between Risk, Value and Price – Know the Implications

Risk, Value and Price

Risk, Value and Price, and how your explore these areas with the buyer are the cornerstones are sales success. Or sales failure.

The relationship between risk, value and price in the eyes of the buyer/prospect is complex.

That’s a fact.

The relationship between risk, value and price in the eyes of the sales person is not always as well defined as it might be. In fact it is often confused and assumptive.

That’s an observation…based on extensive research.

For a win-win sale to be made there needs to be clear line of sight in the buyer’s mind in terms of the financial outlay versus the value received from the purchase.

This is closely related to the risks involved in both making that purchase and NOT making that purchase.

For the sales person, that’s a lot of things to uncover, explore, define and incorporate as part of the sales process.

That’s why the quality of the sales persons and their ability to openly explore  risk, value and price with the buyer needs to be razor sharp.

Some sales people do better than others.

Refusing to Explore the Risk, Value and Price Relationship Costs Sales

Some sales people will ignore the exploration to a large degree, hoping that the features and benefits will sell their solution easily enough.

This breed of sales person won’t exists for much longer. They create little value, they treat their product/service like a commodity and invite the buyer to do the same.

Often this leads to a no sale or low margin sale…and no-one really wins.

Some sales people will conduct a low level discovery around the issues associated with risk and value, maybe erring more on the value side than they ought. Quite often they’ll lose sales because they are simply selling the ‘positives’

According to Cialdini, an expert on influence and persuasion, people will invariably do more to escape pain then they’ll do to seek pleasure…and so now you can see why just selling the positives will stifle your sales conversion rates.

What’s the Buyer Really Thinking About?

A typical buyer, hearing a typical sales pitch will, primarily, rarely be focused on all the good things your solution will deliver. That’s a given. A tick box exercise completed before your appointment was dropped in his diary.

Instead, your typical buyer’s mind will be reaming through the endless list of risks involved. That’s the list the ambitious sales person concerns themselves with, because that’s the list that needs taking to pieces.

These risks will typically revolve around what happens if he takes your solution and pays your price.

BUT, there is a much bigger area of risk that buyers often pay scant attention to, even though they acknowledge it exists.

Some sales people, in their efforts to keep away from anything overly contentious, will avoid this MUCH BIGGER area of risk completely, and therefore deprive themselves of one of the most powerful sales tools, that, if only they could capture and use this, would almost certainly lead them to close more sales.

YET, still they stay away. Head in the sand. Ruled by fear.

So? How Can Uncovering this Unexplored Area Help You Get the Sale?

It is exploring this much bigger area of risk where the sales person can be of greatest value to the buyer. And in doing so can also positively and ethically help the buyer arrive at the most suitable solution.

The key element that is the missing link for many under performing and mediocre sales people is simple. It’s the discussion around the ‘cost of doing nothing’. The cost of not buying. The risk, value and price of NOT buying from you.

Whilst it’s crucial to remember that demonstrating value is the minimum entry level focus of the sales exchange, the sales person will rarely achieve the sales they could without consideration and balanced exploration of value against price and risk, both in the areas of ‘buying’ and ‘not buying’

What many forget, to their loss, is that there are two opportunities in a well defined sales process to explore pain.

Two opportunities to explore risk. Two opportunities to understand the buyer’s perspective on both.

Using both risk laden opportunities to their fullest extent, helps you and the buyer to shorten the sales cycle. Helps create raving fans. Helps you protect/defend your margins in instances where there is price resistance.

The relationship between risk, value and price in the eyes of the buyer/prospect is complex. Unraveling it for the buyer has a high level ROI. It’s more than worth the effort.

The relationship between risk, value and price in the eyes of the sales is often ill defined. It is often lacking clarity and focus. That alone is costing business, orders, margin and market share.

It needn’t be that way.

Discover how you can gain razor sharp focus in exploring risk, value and price during sales exchanges, because it’ll make the biggest difference to your sales conversion rate, your sales pipeline and your sales acquisition costs.

Just hit the link – Tell Me More

Happy Selling

Carol

carol@mortonkyle.com

0779 002 1885

p.s. You can check out Free Sales Improvement Guides from Morton Kyle Limited here.

p.p.s Subscribe to our weekly sales improvement and business development guide here – The Advanced Business Achiever

Don’t be a Tree!

Don’t be a Tree!

Where’s the Best Place You Can Think of to Hide a Tree?

There’s no great mystery. No mind games…

The answer is, of course, in a forest…right in the middle of lots of other trees.

Many identical trees. All looking vaguely similar. They may be different species of trees, with different characteristics, varying behaviours in different seasons, but still all trees.

Just trees.

You drive by such forests. You’ve walked though plenty of them. All part of the regular landscape…beautiful, yet typically indistinguishable from each other.

I bet you’re even picturing a forest of trees in your mind now…

What if this is exactly how your prospects views you and your firm’s position within your market place?

You and your business, well, to your prospects view, you’re just another tree in a collection of trees, in a dense forest of trees…

So, Do You Really Want to be a Tree?

I’m guessing not.

You know it’s all too often it’s too easy to get wound up in the daily grind and hustle associated with sales and business development, marketing, filling the sales funnel and working out margins to just sit back and wonder what kind of market place you’re in, as opposed to what sort of market place you SHOULD be occupying…

And even more importantly, to ask yourself…

…if you could fully communicate how brilliant your company is to your prospective customer base, what would that mean to your sales team, your profitability, your turnover and your market share?

Consider This…

Let’s just take a minute…because this is more important than you maybe think.

Imagine you’re seen to be ‘just like all the others’ even though you know you’re not…then it’s a fact that your competitors will be restricting your ability to charge anymore than you already do…what that means is your competitors are restricting your profitability

To break this forced control of your profitability you need to take a different position in the buyers psyche.

Position yourself in a sea of similar products/service providers, and your prospects will select the most transparent common denominator to buy from, this common denominator is typically cost…what this means is that it’s a continual race to the bottom in terms of charges, pricing and margin.

The fact is, if you can’t demonstrate your unique value to the market, expect to fight hard for diminishing returns.

What about if your competitor drops their price, you have no choice but to do the same, or lose market share and watch your sales pipeline collapse…which means that your competitors not only drive your pricing decisions, your margin, they also drive your decision making and your timing.

If you want to sever these shackles, you need to be top dog in the market space

So, let me ask you this.

Who is really running your business? Are you really making the decisions in your business? Who really has control over your business?

Stop!

Because the real question is this:

Are you just there to make your competition look good?

How Can We Help You?

Everything we do is based on putting you, your sales team, your business ahead of the competition.

Whether it’s creating a winning sales and business development strategy, delivering high impact sales training, coaching and mentoring key functions or undertaking root branch sales audits, our aim is to help you exploit your current marketplace, create, develop, expand your market position and create value overload for you with your prospects and customers…

Are You Ready To Step Up?

Book your free consultation on 0779 002 1885 or you can email carol@mortonkyle.com

Down load our free report on stepping up and running your market place – hit the link to get your free copy now Only Dead Fish Go with the Flow, in this report you’ll find insights to help you understand the true cost of being one of many potential suppliers to your customers and also what you can do about it.

Only Dead Fish Go with the Flow is free and you can download it instantly.

So, that question again…

…if you could fully communicate how brilliant your company is to your prospective customer base, what would that mean to your sales team, your profitability, your turnover and your market share?

Contact us now for a confidential chat, discretion assured, on 0779 002 1885 or email carol@mortonkyle.com

And stop being a tree…

P.S. Sign up for your free sales and business development insights – delivered straight to your inbox every week – totally spam free – perfect if you’re looking for new sales training/sales coaching tips to boost the sales team performance, or deliver as mini sales training sessions…always plenty of fresh proven ideas…register here – The Advanced Business Achiever  Totally free and always will be!