‘Buyers are only interested in price’. This is the message that I am receiving loud and clear from many businesses at the moment, and most companies in our industry feel this is all they can sell on. They also think that any attempt to make the conversation focus on anything else is a wasted effort. From my own experience as a buyer of products and services, especially from print-service-providers, the majority of sales approaches that I received were extremely price focused.
Research also shows that selling on price could be costing you new customers. Here is some recent research, which shows that companies should be selling on more than price. The research was carried out by Marian Stefani of Flyte. Stefani interviewed a number of buyers, she found that:
- 100 percent of buyers said that price was important
- 100 percent of buyers also said that price was not the only factor in placing work
- 80 percent of buyers stated that they would pay higher prices if they could see a higher return-on-investment from their purchase
In other words, if you sell on price alone, you are likely to miss out on jobs.
Sales people that avoid selling on price will often create better customer relationships. They will be more in control of the sales process. They are also more likely to achieve their targets. And they are more likely to be enjoying their jobs.
Those sales people that continue to sell on price will not be enjoying themselves so much. They will be struggling to achieve their targets. This is because customers will be treating them as commodity suppliers. In addition, these sales people will not have the same level of relationship and will fail to have any control over their customers’ buying decisions.
Three key tips
The first and most essential step in order to move away from selling on price and
engaging potential customers is to stop banging out the ‘standard sales message’
Avoid giving the buyer a standard sales message: Over my buying career I have been approached by over 1,400 companies. Most of the sales pitches that I received were exactly the same. They usually focused on quality, service, company details, and often the environment. If everyone focuses on the same issues, then there is only one differentiator for the buyer.
That differentiator is price, as identical sales approaches encourage buyers to choose on price. There really needs to be a feature in the pitch that makes it stand out and takes the conversation away from this focus; this could be anything from the ability to create interactive campaigns, to special effects capabilities.
Sales people that avoid selling on price will often create better customer relationships. They will be more in control of the sales process. They are also more likely to achieve their targets. And they are more likely to be enjoying their jobs”
Make sure that a request for a quote happens at the end of a conversation: I have always been surprised at how frequently sales people ask for quotes early on in the conversation. I often found I was asked if I had any work to quote on in the first couple of minutes of a call. There was no attempt to sell me on the benefits of the seller’s company first. The objective of the sales person was purely to try and win work by being cheaper than the competition.
In this type of call, who is making the conversation about price? It seems to me that it is not the buyer; rather it is the sales person. I have even seen examples of sales people who have asked to quote on jobs, brochures for example, that have already been printed by the prospect. This has to be the ultimate waste of estimating resources. So what should sales people do about this? I am going to suggest using an alternative way to construct an engaging print sales message.
Construct a sales message using the TPD principle: To engage a buyer, a good sales message must contain three elements.
1. Target audience: The sales effort should always be focused on a particular market sector and type of buyer. A buyer will always be more receptive if a sales person can demonstrate a full understanding of their market. It is much more effective than just talking about the job at hand.
2. Pain: People buy because of the challenges, or pain, that they face. The features and benefits that a company like a printer can offer are rarely
of interest to a buyer. This is especially true in today’s marketplace
where there is little understanding or appreciation of the end product. The main issue that a buyer is interested in is how your company makes their lives easier.
3. Difference: It is vital that sales people demonstrate why buyers should use their company. They expect good quality, good service, environmentally-friendly practices, and competitive pricing as a matter of course. Print companies need an edge, but some people may feel that this is not enough.
What happens if buyers still push on price?: Let us be clear; price will always be important. However, if you can shift the conversation to focus on the value that you can give, you have a much better chance of increasing your margins. Remember, if you can raise your prices by just 3 percent you are likely to be adding more than 25 percent to the profit margin of a job.
Make sure that a request for a quote happens at the end of a conversation: I have always been surprised at how frequently sales people ask for quotes early on in the conversation”
You should also remember that if I choose solely on price then I will continue to seek lower prices. I will have no loyalty to you as a supplier.
Here are three action points for you to start shifting the conversation sway from price:
- Audit your current sales message—would it really stand out if you pitched at the same time as several other competitors?
- Review your sales process—when do you ask a prospect for a quote?
- Brainstorm a new message—use the TPD principle
If you act on these three points you may find that you start a new type of sales conversation. You should be able to start a conversation where buyers are not just interested in price.
