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
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
- Sales Challenges Made Easy | Get A Sales Accountability Partner - June 12, 2020
- How to Keep Business Development in the Selling Zone - June 11, 2020
- Training in How to Solve Critical Revenue & People Issues - June 5, 2020