Selling against Value, with Price.

 

In these frugal days, Price,
or as Buyers refer to it “COST”, is a very important factor in their Decision Making.

Sometimes, clever salespeople reverse the Price Advantage by offering more VALUE.

It’s a Formula:

Value = Benefits less Cost

Their “Added Value” comes from offering MORE benefits to cover their EXTRA Cost (higher Price)

For example:

They may claim that “due to lower running costs”,
their Total Value over five years is better than yours.
However, YOUR PRICE is less than theirs is, NOW!

 

 

So, “How do you WIN on Price?”

 

There is an embedded preference in most people.
In Human Decision Making we have a marked preference
for Rewards (payback or benefits) that arrive EARLIER.

 

People prefer Rewards sooner, rather than later.

Would you rather have $1 now or wait a year for $3?

If you chose a dollar now, then you are in the majority and you exhibit PRESENT BIAS.

 

You like the certainty of rewards now,

rather than the hope for reward at some future date.

A future which may, or may not, come!

When selling on PRICE, you have to appeal to your Buyers “Present Bias”.
The Value of a lower Price is available NOW.
The Value of “added” benefits only occurs over time and has a lower value than a Reward instantly available!

Who knows
if the projected value over five years will occur?
Who will get the credit, perhaps your successor?

The Time Value of Benefits discounts with time.
The certainty of reward and recognition of a lower Price, to you a lower COST, is available now.

 

 

So, when Selling on Price against a “Value” Seller, make sure you invoke the “Present Bias”.

Make sure your Buyer knows they can have their REWARD from you NOW!

How does PRICE link to Sales forecasts and missed Targets?

Read http://brianmaciver.blogspot.com.es/2012/03/ignoring-sales-forecast-and-missing.html?spref=tw

Advanced Selling Skills in 30 minutes, the long version.

 

How long does it take to learn Advanced Selling?

Recently, I was asked what could be done in 30 minutes?

 

A One Minute Message:
Advanced Selling Skills are competences
which only the top 5% of sales people have.

The 3 Minute Message:
Advanced Selling Skills which are held by less than 5% of Sales people are Interactive Skills ,
composed of 20 Verbal Behaviours.
Interactively Competent Salespeople, Practitioners of Advanced Selling Skills, know the Behavioural Effect of the 20 different Verbal Behaviours.
They are able to use Behavioural Modification (BMod.), on themselves in order to increase significantly successful outcomes in interactions with Prospects and Customers.

 

 

 

The 9 Minute message

include details of the 20 Verbal Behaviours, how B. Mod changes other people’s verbal behaviour,
e.g. How to double the chances of a Prospect agreeing to your offer.
It is supported by 9 slides using Beyond Bullet points to tell the Story.

The 27 minute message

gives examples of Gaining Agreement, avoiding Disagreement and Managing Successful Interactions.
It identifies 5 “deadly” behaviours and 3 “Golden Behaviours”
It is supported by 25 slides (Beyond Bullet points) to tell the story.

The 40 minute Presentation

“Why Advanced Selling Skills?” is an interactive version of all 4 of the above Messages,
it has a reduced Pack of 14 slides, requires two flip charts and a 3M post-it pad and a medium point Felt tip for each person.

 

If YOU still want to do ‘something’ in 30 minutes then.
I suggest that YOU:

Spend the 30 minutes “interactively” establishing (by them) how important it is to have Advanced Selling Skills.  You can do this by asking THEM to list the implications of NOT having Advanced Selling Skills and the Value of having better Selling Skills than 95% of their Competitors.

If your Salespeople have written long lists in both columns,
then run a 2 hour Interactive session with "Desert Survival" from the Copyright holder Human Synergistics, Inc.
(Don’t use a plagiarised copy, it is probably wrong anyway!)

http://www.humansynergistics.com/products/survival.aspx

While the Delegates solve the Survival Problem in groups of up to 8,
YOU use Behavioural Analysis (Observation and Categorisation) to identify the Behaviours they currently use (pretty basic).

You then present a Benchmark Model Behavioural Analysis of Advanced Sales Behaviours, together with the EVIDENCE that previous delegates, with Advanced Selling Skills achieved substantially better results at the exercise, than they did. My, BMAC Consultants, Behavioural Bench mark has n=1500 approx., but the copyright holders have a substantially larger one, for all kinds of people.

 

EVIDENCE BASED
SALES SKILLS WORK,
so use them!

 

The real answer is;
Advanced Selling Skills is a 3 day learning event,
it takes 3-9 months of coaching to “internalise” the skills and
about 2 years for the Salesperson to be a “Confident Practitioner”.

 

Imagine, your Cardiologist telling you,
just before he carries out the by-pass,

“I learned this off of a 30 minute YouTube video”

 

…good luck!

 

 

Send me a request for the 5 “deadly” behaviours and 3 “Golden Behaviours” to brian.maciver@gmail.com

Or, ask me to send you a copy of the 1, 3, 27 or 40 minute messages.

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Who should carry out the Sales Negotiation?

 

I have run Negotiation Skills Training for more than 20 years.

 

BMAC Consulting ExtraOrdinary Negotiation Skills are based upon:
Game Theory Strategies and Verbal Behaviours. These have both been Validated by a wide range of academics and practitioners.

“The proof of the pudding is in the eating”,
   and sometimes I noticed it didn’t work!

People who had attended the training and who had done well in the Classroom ‘failed’ to “transfer” the skills to the Real World.

I have followed up on this quite extensively
and noted the following paradox:

 

 

after training People knew what to do, but didn’t always do it!

It is irrational, but it is also true. They had the tools to create win/win outcomes, but they were often sub-optimizing the outcome. They were too “soft” in some situations, Customers, Family and Friends and too “tough” in other situations Shops, Restaurants or with complete strangers.
On examination, these “Skilled” Negotiators were failing to use their skills appropriately;
in fact their behaviour was ‘unaligned’ to the outcome.

The missing factor was ‘empathy’.

In situations where they had strong empathy,
they were failing to align their behaviours and use appropriate strategy.

In situations where they had little or no empathy,
they were simply going for the single win, a “Bully” strategy.

Neither was particularly effective.

 

What does this mean?

It means that Low to Medium empathy seems to be the right amount to provoke correct strategy and aligned verbal behaviours. This level of empathy is more usual in second line staff, Sales manager, Financial Director or CEO.

When we come to negotiation (not Haggle) then,
the Salesperson is NOT always best.

Check their empathy for the Account
BEFORE you let them negotiate!

 

 

 

 

And, check the Sales Manager, FD or CEO for SKILLS
before you ask them to negotiate, instead of the Salesperson.

 

 

 

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