How to Beat Low-Cost Providers August 10th, 2018 Welcome – we’ll be starting soon!

How to Beat Low-Cost Providers August 10th, 2018

The OLD Winning Sales Process Persistent (Pushy) Always Be Closing (Confrontational) Aggressive (Manipulative)

Modern Winning Sales Process A Perceived Expert always gets the invitation. A Perceived Expert commands attention during demos / presentations. A Perceived Expert shows they’re going to help, and wins the business.

Being more expensive helps build the perception of expertise, if done correctly…

Agenda Seven Ideas Lesson Plan Let them know you’ll be more expensive Sell yourself Develop an internal champion Give ‘em a taste Know your differentiators Show the price early in proposal Logically justify Lesson Plan

Poll Question

How frequently do you compete against low-cost, cheap products and/or services?

How frequently do you compete against low-cost, cheap products How frequently do you compete against low-cost, cheap products? - Never - Sometimes - Most of the time - All the time

1. Let them know you’ll be more expensive

How to do this without being a jerk… Have this conversation early. Don’t ask about their budget in the same conversation. End a story about a case study or two with this: “In both these cases, we were weren’t the cheapest … or the second cheapest, but our customers felt they were worth the extra investment. Hopefully that’s the same here.” If there is a relationship: “We’re going to be the most expensive of this group. Is that ok with your team? Will we have a shot?”

2. Sell yourself

You Explain exactly how you work with your clients. Don’t use adjectives describing you – tell them what you do. Use personal references from clients. Ask personal questions that matter to them – not the organization.

You Explain exactly how you work with your clients. Don’t use adjectives describing you – tell them what you do. Use personal references from clients. Ask personal questions that matter to them – not the organization.

You Explain exactly how you work with your clients. Don’t use adjectives describing you – tell them what you do. Use personal references from clients. Ask personal questions that matter to them – not the organization.

You Explain exactly how you work with your clients. Don’t use adjectives describing you – tell them what you do. Use personal references from clients. Ask personal questions that matter to them – not the organization.

3. Develop an internal champion

“Why are they looking at these cheap bozos?”

You can’t ask this!

Who? Not necessarily your point of contact or best friend. Influencer on decision. Personally impacted by you winning the sale.

4. Give ‘em a taste

Offer a free service that gives them a feeling of never going back. Act over-the-top during all sales interactions. Bring them to your office. How to give ‘em a taste

5. Know your differentiators

Know Your Differentiators Quality of product. Best material. Ideal technology. MTBF 10x. Focus on and know the industrial market. Have all the certifications, insurance, etc. Response time < 4 hours. Triple and half 9’s. Exercise Let’s list some differentiators between your products / services and the less expensive ones we’re addressing.

Know Your Differentiators 95 locations Users of the equipment that we install Cyber security group Use only products that have been purchased by US government Three legs – physical, electronic, cyber Exercise Let’s list some differentiators between your products / services and the less expensive ones we’re addressing.

6. Show price early in proposal

It’s all about the momentum after the meeting

“As I mentioned a few weeks ago, we’re usually more expensive “As I mentioned a few weeks ago, we’re usually more expensive. I’ve found it’s helpful to show the price up front, and then share our services with you. That way, instead of it being a mystery, you know the price and can justify throughout the presentation.” Say this…

7. Logically justify

Poll Question

When is the best time to provide logical justification (tailored ROI or TCO calculations)?

When is the best time to provide logical justification (tailored ROI or TCO calculations)? - As early as possible. - In the proposal. - After they want your solution. - After the sale.

When is the best time to provide logical justification (tailored ROI or TCO calculations)? - As early as possible. - In the proposal. - After they want your solution. - After the sale.

Best Practices to Providing Logical Justification Wait, Wait, Wait. Make them want it first. Provide general numbers as a teaser. Don’t stretch the logic, but let them. Include the subjective, intangible benefits as bonus. Let customer drive calculations. Provide graphical image.

Lesson Plan

Questions and Discussion Chris Peterson cpeterson@vectorfirm.com