Presented by: Peggy Jennings An Introduction to Value Pricing

Sell value not price If you are selling based on price, the lowest price will win If you are selling based on the value of your services or product to the customer, value will be the primary decision criteria Required – get close to prospects, take time to know their problems and communicate the value of working with you so that price will not be the decision point Note – do not spend time with prospects who are not prospects

Offer a compelling value proposition The economic equation: Pain / problem = $ cost to the organization Your solution = $ cost to the organization Focus the decision criteria on eliminating their pain / problem and what that now costs the organization and you will be a hero

Develop your value to the customer Develop a range of products or services that would have value to your customer or prospect Let the customer choose which level of value option fits their needs at this time Benefit – customer sees opportunity for more value- driven services from you in the future, establishing a long-term relationship rather than selling a one-off commodity

What about this recession? Downturns in the economy actually help to focus customers on getting value for their money If a seller believes the buyer is focused on price they will discount in order to get the business, which in turn focuses the buyer on price. It’s a self-fulfilling prophecy with no possible return to a value conversation Focus your customers or prospects on the value of your services or product and how you can help them solve problems

What do prospects need? In today’s economy, the most successful value-driven sales messages generally focus on one of these three “pains”: How can they make more money? How can they save more money? How can their operations be more efficient? Focus on one of these “pains” and you can establish value

What about commodity-type products? If you make no effort to develop your service or product past the commodity stage, you will not be able to sell value A standard light bulb is a commodity under price pressure and competition An incandescent bulb provides better light, has a higher lifetime of service and lower overall energy consumption Which one would you rather be pitching to a customer?

Don’t say goodbye! If you have correctly identified a business or person as a worthwhile prospect, and if you are selling value, do not let one failed attempt to provide service eliminate all the work you have done to this point Shore up your sales process to include a database of prospects and continue to send them value-driven articles, invitations and newsletters. A prospect may not have chosen the correct solution and you should remain visible for when they change their mind

Table Talk - Examples of how a value-driven model has been (would be) successful in your specific business Thoughts of how your customers could use a similar value-driven model for their success