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| Making The Sale By Proving Worth What does value imply? When addressing this fundamental query I first believed about its partnership to money which got me considering about when cash was invented and who invented it. World wide web for the rescue What is cash? Money means distinct items to various people to you it may possibly mean coins, notes or credit cards. To some people in building nations it could mean beads, shells, acorns or human toes. In brief, money is whatever we think has worth. So who invented it? The first written records from the use of money date from 1200BC, inside the area of land now called Southern Algeria, although then it was covered with water. Inscriptions in stones record that 'twelve shekels' had been paid in to the bank account belonging to Algar Hammurabi, in return for 'use of his daughter'. Twelve shekels in today's cash would acquire you hundreds of prostitutes, all much better searching than Hammurabi's daughter, who was, by all accounts rather dull. More generally, just before money' was introduced as a widespread currency, expense was determined by the work / innovation we personally had to apply in return for other items that we needed to be supplied by other individuals. As an example, the nearby Blacksmith might shoe a farmer's horse in return to get a handful of sacks of flour. In the contemporary world, widespread currency enables us to buy products and services from a broad range of suppliers, a lot of of them supplying comparable items at sometimes related and at times quite various rates! Why is this? Why does a hotdog at a pop concert or perhaps a football match cost 3 times as considerably as in the village fete? Why does a bunch of bananas sell for 3 times as considerably in Marks & Spencer as it does from a market stall? Why do 80% of consumers use BT for their domestic telephone solutions when the same services are available from other vendors at half the expense? The answer lies within the value propositions' that these goods and organizations offer in terms from the customer's perception in the price / benefit equation. The, key word, of course, is: perception' which gives us a clue regarding the importance of, not only our worth propositions, but also how we communicate them to our customers. Why is it important to get a company to define its worth propositions? Any organization that has to sell factors (and most do), needs to be able to communicate worth to its customers if it is to optimize its long-term profitability. The sales team in particular needs to be able to articulate value to its customers to demonstrate that their price / benefit equation is stronger than the competitions'. But what exactly is customer benefit? It is clearly not just a long list with the company's offerings in terms of features and advantages. It is only a benefit if the customer gains pay-off' in relation to their needs and wants. The salesperson's job is to define these needs and wants through careful positioning, questioning and listening but to do this, the worth propositions in the organization and its products / solutions need to become clearly defined. So who seeks the value? Shareholders want value in terms of profitability and ROI. The CEO and Board members usually have a weather eye on this! Departmental heads tend to look at the value that is added to the department and the achievement of their neighborhood objectives. In all cases, value is sought by Nike Air Max the individual driven by their personal, emotional wants as much as the needs with the business. Again, sales people need to expose and develop these. Brainstorming There are likely to become several key folks in your organization who are well placed to help build value propositions. Form a task group comprising sales folks, marketing, product development, finance and any others who may well be able to contribute (they can soon leave the party if they can't). In traditional brainstorming style, fill up flipcharts with all ideas, no matter how zany' they might be at initial. (Mind Mapping software can also be a useful tool for doing this). Assuming you are in a business-to-business selling environment, start with the fundamentals from the value a customer could be seeking. The central theme is profit. How to increase sales and / or how to reduce costs. Remember you can sell far more by increasing volumes or prices. You can reduce costs by paying less or increasing productivity. Consider the functions within the customers' business that contribute towards these goals, and then consider what your value propositions are to help your customers to achieve them. Consider about the negative consequences of them not having your products / solutions. These negative impacts can soon be converted into positive worth propositions. Draw up where your product / service fits in their worth chain. How much worth does it add? What profits do they make as a result of your inputs? If in a product' business, don't forget your service wrapper'. Quite often, inside the customers' eyes this is of more value than the product! Once you have listed your value propositions, prioritize them into ABC's in terms of how considerably competitive edge you believe they represent. A's being USP's (unique selling point), B's usually strong v the competition and C's as me too's. Finally, alongside each proposition, consider the best possible proofs' you have to substantiate your claims. Technical bulletins, case studies, presentations, testimonials etc. Oh, and one much more Air Max Pas Cher thing! Make sure the sales team develop the worth propositions by adding the questions that need to become asked of specific individuals to engage needs and wants for your propositions. Otherwise, no deal! |