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Value Selling and Value for Money

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					Value Selling and Value for Money

                                                                 Powerful Sales Performance



It’s price isn’t it?

If it is true that price is a critical factor in every
purchasing decision, then why do we buy
designer labelled clothes and luxury cars in
seemingly increasing quantities?

And why are those items more expensive when
they don’t cost so much more to make? The
answer lies in the perceived value. Value is not
an inherent attribute of the product but it
commands a higher price.

                                              of
In fact it is safe to say that things are not '
value' unless we have paid for them.
                                                         The perception of value
Value for money?
                                                         So how can we create this perception of value for
Value is subjective. Value is a benefit but a            our customers? Within any market there are
benefit is not necessarily of value to all               several levels of value with which suppliers can
customers and of course all customers definitely         help their customers to perceive.
do not assign value to the same benefits. Not
only that, but we need to remember that in spite         The first step is for sales people and vendors to
of what we have been told in the past, our               become more comfortable with selling value and
customers do not buy features and benefits!              creating a value offering in order to satisfy the
                                                         customer on 3 levels:
They buy VALUE, value based around an
emotional association with the item or service
they are purchasing.




                                         For more information contact:
                                         Andrew Rathbone
MERCURI INTERNATIONAL                    Tel: 0121 706 3400
www.mercuri.net                          Email: Andrew-Rathbone@mercuri.co.uk
Value Selling and Value for Money

                                                            Powerful Sales Performance



 Three levels of value                              Personal Value is the one that can have the
                                                    most impact for a Vendor / Client relationship.
 Corporate Value involves improving the image,      As mentioned above, value is subjective and all
 improving the PR of a business, improving          people attach a different level of value to a
 share value or assisting our customer to           product or service.
 achieve their corporate objectives.
                                                    Most of us are managed in line with a set of
 This might seem a little way from our normal       internal measurements, or Key Performance
 sales agenda, but how often does something                          s).
                                                    Indicators (KPI' Our clients are no different and
 that you sell help a customer in this way?         their KPI’s will determine how they work and
                                                    what areas are important to them.
 Changes in the way you supply goods and
 services, the way you adapt your offer or align    These factors can exert significant influence over
 what you do to work in harmony with your           the perception of internal and external personal
 customer base, will all create a return to the     value. A CFO of a large IT company once said
 client at this level.                              about his preferred suppliers:
 Operational or Functional Value is about
 enhancing your customer’s business processes       “They are in the business of making me look
 so that they can improve how they operate on a     good… I’m in the business of making my
 9-5 basis.                                         boss look good so he can sign off our
                                                    spending on their products!”
 Improvements in practices, supply chain
 changes, the removal of operational problems,      Think promotion, think reputation, think
 even the streamlining of internal processes can    achievement of KPI’s, all these add up to the
 improve the performance of our clients’            creation of personal value for the decision
 businesses and, of course, our relationship with   makers in your clients organisation.
 them.
                                                    These three levels of value will challenge your
 Unless you sell a service or work in a             sales people, your product and service offers and
 consultancy based business, this level of value    your understanding of your customers. But
 is probably being given away for free!             defining these three levels of value for you and
                                                    your potential clients will start you on the journey
                                                    to a better value proposition, a journey which
                                                    should lead to better relationships and more
                                                    valuable business partnerships.



                                    For more information contact:
                                    Andrew Rathbone
MERCURI INTERNATIONAL               Tel: 0121 706 3400
                                    Email: Andrew-Rathbone@mercuri.co.uk
www.mercuri.net

				
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