VALUE SELLING METHODOLOGY
While many companies invest substantial resources trying to reduce operating costs by a fraction of a percent, what they don’t realize is that that systematically increasing the selling margin can have a magnitude greater impact on net profit.
First, understand the value that you create for your customers
Most B2B manufacturing companies are not very good at pricing. All too often, their prices are based upon an estimated manufacturing cost with a somewhat arbitrary assumed markup. This approach is what we refer to at Sales RaceHorses as “self commoditization. We help leading B2B companies to understand and quantify the value that they create for their customers so that they can establish appropriate pricing.
Communicate and capture your fair share of the value
After you’ve developed a real understanding of the value of the solution that you can offer to your customer, it’s important that you communicate this value in such a way that they recognize how much it’s worth to them to purchase your products or services. When done well, you create a much stronger negotiating position for yourself, enabling you to capture higher selling margins.
Key Benefits of our Value Selling Methodology
Our clients learn how to change their customer communications away from the topic of price, and turn the conversation more towards the value that you create for them.
We help sales teams to quantify more than merely the tangible benefits of your solutions/products. We help them to think about more intangible value-creating variables, such as avoiding unplanned equipment outages due to the more reliable nature of your products compared to those of your competitors.
By changing the way your sales team thinks, we transform your culture away from a Cost+ pricing and price-competition way of thinking to a much more confident solutions-driven value-selling approach. This confidence, combined with practical value quantification and communication tools, results in a higher opportunity conversion and higher overall profit margins.
How we help you to increase margins and selling prices
We teach sales teams first to focus on value, and to turn the attention away from price. We then train them in techniques to probe their customers so they can learn how to assign dollar values to those characteristics of your products that uniquely solve customer problems.
Select the entire organization, or select various departments that you feel might benefit most, and administer the anonymous employee engagement survey.
Upon completion of surveys, collect and analyze the data, then rank them based upon appropriate scoring methods to identify the most critical areas of the business requiring change.
After the data is collected and compiled, we help you to communicate the results of the survey to the employees so that they recognize leadership’s intention and sincerity to make the changes needed to increase employee engagement.
Since the next step will be to have the employees themselves generate solutions to the problems identified in the employee engagement survey, we will assist you in establishing a trusted team of employees who will represent the employees in developing the solutions.
We work with your employee representatives to brainstorm and rank prioritize the solution approaches to the most important variables relevant to employee engagement as identified from the survey results.
We help your employee representatives to develop, define, and implement the selected solutions.
After an appropriate time period following implementation of selected solutions, we re administer the employee engagement survey to measure results and impact of the changes made. We can then re rank the variables, and repeat the process in order to continually drive employee engagement upwards.