scenario, imagine you are a drill bit salesman. Although what your customer buys from you is a drill bit, what they actually want is a hole. This means we need to think in terms of outcomes, not products.
And to fully understand how we can help the end user, we must identify both their most and least desired outcomes.
Therefore, if I am selling a ball valve to a refinery, what the end user is actually wanting is safe, reliable operation staying in uptime. And what they absolutely want to avoid are leaks, shutdowns, safety incidents, and rework.
In other words, the end user wants peace of mind, not a ball valve.
And that means we as sales professionals must clearly communicate the vision of what potential future outcomes will look like both with and without us. Then doing the hard work of consistently connecting our product, processes, and people to those outcomes.
Let Me Tell You About Our Value Story
So... now that your team has the answer to solve the end users most desired outcome, all you have to do is tell your company's story. But how?
To help you visualize this, think of each aspect of your value--from quality, delivery, customer service, and even price--as a separate stick. Combined, all of these sticks are very
Value Selling Is Not a Sales-Only Responsibility
To effectively develop a true value plan, a sales professional must clearly communicate the customer’s most and least desired outcome throughout the entire organization. This means that value selling is not just a sales responsibility.
If the value we promise is: on time delivery, exceeding quality standards, and efficient customer service--then everyone from the factory, the office, the warehouse, and logistics plays a vital role. And this combined effort bundles together, creating the desired value for the end user.
And it is the job of the sales professional representing the manufacturing to communicate this combined effort into a story that the end user clearly can visualize as the answer to what they truly want on a project or bid.
have to do is tell your company's story. But how?
To help you visualize this, think of each aspect of your value--from quality, delivery, customer service, and even price--as a separate stick. Combined, all of these sticks are very valuable and will help make up the premium service and product that will solve the customer's demand. However, in a typical bidding situation, the buyer will try to unbundle your sticks so that each is left alone and vulnerable during the negotiation phase.
Like the famous fable of the 'three sticks' where an old man shows his quarreling sons that a single stick breaks easily, but a bundle of sticks tied together is impossible to break, you must avoid the temptation to unbundle your value sticks.
If the buyer asks you to lower the price to match the cheapest option on the bid, you may be tempted to go back to your team and ask, "If you we can simple match the lowest competitor's price, then we will get the business."
But, before you do this, you should first ask yourself if lowering the price is really going to give your customer what they want. For example, if you reduce your price by a high percentage, then you will likely have to use a cheaper material to make the product, thus reducing your quality, and if the product you produce fails your inhouse inspection, then you will have to start over and ultimately you will miss your promised delivery.
Instead, ask the buyer about their least desired outcomes and remind them that if all they choose a cheap price, then they risk losing what they are actually trying to buy in the first place.
And why not go a step further? Ask them whether they think the other 10+ vendors on their 'approved' list will give them their most or least desired outcomes? Make them think deeply about their choice.
Because if your value story collapses, then you are right back to price.
Price Does Not Equal Value
So, the next time a customer asks, “Why don’t I ever see your number on projects?”
Remember, it is not because the distributor failed you. Change the conversation—so you don’t have to be.
If all we give the channel is a part number and a price, we shouldn’t be surprised when price is the only thing that survives the process