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1、Value Added Selling Techniquesby Tom Reilly, (summarized by Paul Gruhn)The material presented in this book will: Help you gain a substantial competitive edge, Give you practical ideas on what to do when the buyer resists your price offer, Help you learn how to get the buyer to think in terms of valu
2、e rather than price.IntroductionValue is in the eye of the beholder. What/s valuable for you is not necessarily valuable for someone else. Value is determined by the buyers unique set of factors, some of which he is aware of, some of which he is not. In sales, the impact your product has on the buye
3、rs needs determines its value. If your product or service has much in common with the buyers needs and situational variables, then it/s a good value for the buy er. If the buyer, however, perceives a need only for a good price, its incumbent upon you to raise his awareness that other needs exist, su
4、ch as dollars saved in the long run, increased revenues, convenience, safety, better delivery, etc.The greater the perceived value you bring to the sale, the fewer price objections you will encounter. Here are some pricing facts: In the absence of all other information, brand name is still the best
5、indicator for quality. Market leaders can charge more than the competition. If you charge more, people perceive greater value. Conversely, there is a reverse trend toward lower priced goods.Understanding the following rules of value added selling, however, will make your efforts easier and more effe
6、ctive: Customer satisfaction is a function of the customers expectations relative to your performance as a vendor. You dony/t want every order. Give the low-profit, high-aggravation business to your competition. You can/zt make a good deal with a bad person. No product is overpriced unless its undes
7、ired. Not all customers are value-added targets. The effort required for value added selling means the recipients must be carefully selected. The stronger the relationship between buyer and seller, the less important the role price plays.If price were the only thing your buyers purchased, why would
8、your company need you? Remember that a salesperson is paid to sell as profitably as possible for their company.Rather than stressing cost savings, present your ideas as profit enhancements. This is more than a semantic difference; itus a difference in attitudes. It creates a more positive mindset -
9、youure increasing rather than decreasing something.Price shoppers tend to be short-term thinkers who donut give much thought to the future -they tend to have tunnel vision. Your task is to get their minds off instant gratification by pointing out long-range benefits. Expand their peripheral vision b
10、y raising their awareness level of all the other factors and discussing the long-term advantage of owning your product.Reactive strategies for dealing with price objectionsDivorce your ego from the sale: Remember that when the customer rejects your product, itHs not a direct assault on you. Donut ge
11、t defensive and donut argue.Create an objections file: Have an objections file with potential responses for each objection that could be raised.Anticipate objections in a positive way: This allows you to maintain a more positive mental attitude because youure not thrown off guard by them.Help the bu
12、yer save face: If the objection indicates the buyer misunderstands what youve presented, give him an opportunity to save face.Listen with all of your senses: Be totally perceptive. Listen for whatus being said as well as whatus not being said.Be persistent: 75% of all salespeople quit after the firs
13、t no. Be persistent, without being a pest.There are three steps to quell price objections: clarify, buffer, and answer.Clarify: You want the other person to expound, elaborate, or discuss his concern more fully to build your understanding and ventilate his emotion. When probing a price objection, pr
14、obe a little deeper to discover his motivation. Also, ensure the buyer is making an apples-to-apples comparison. Clarifying means youure in the “ask” rather than the “tell” mode. When most salespeople hear an objection, they typically go to the tell mode and try to overwhelm the customer with prepar
15、ed rebuttals. This is not as effective as going to the ask mode.Buffer: This means showing partial agreement, empathy, or understanding for the other personus concerns (e.g.，”I understand your position/1). Avoid using the nyes/butu technique. When you use the word “but”, it tends to negate anything
16、preceding it, plus itus argumentative. Also avoid using “however and “although. A better approach is to use the word ,and. For example, “I understand your position, and I think there is another way we can approach this.”Answer: After youuve clarified and buffered, answer the objection with one of se
17、veral strategies. In general, there are four ways to answer any objection.1. Inform the buyer. Give him additional relevant features and benefits. Your task is to convince him that your product is a good match for his needs.2. Review the buyers needs.3. Alternate-advantage overload. If thereus a par
18、ticular feature your buyer dislikes, overshadow it with the other features he desires.4. Reverse the objection. When you reverse it, make the objection the reason why someone should buy your product. For example, nMr. Buyer, the fact that you are hesitating indicates to me that you want to make a go
19、od buying decision. If thats the case, thatus exactly why I feel you need to go ahead with our product since weuve demonstrated its superiority relative to your needs.”How to answer price objectionsThere are a number of ways to respond to price objections.The subtraction method: This strategy is bas
20、ed on the assumption that you can make the buyer aware that paying less brings with it certain consequences. It works especially well if you have lower-quality goods to sell or can reduce the service level you offer.Cast doubt: Here you want to make the buyer painfully aware of the consequences of n
21、ot receiving the full advantages you offer. Your objective is not to intimidate, but to point to the obvious impact of not buying something the prospect needs.Other methods include reinforcing quality, service, selling loyalty, using success stories, etc.Competitive biddingThis is a perplexing and i
22、ntimidating aspect for many salespeople. Having the opportunity to quote a product is not always something to rejoice over. The author has developed a “Bill of Rights for Salespeople.1. Before generating the quote, youure entitled to talk with the relevant parties (end - users, decision makers, etc,
23、 who will be involved in the selection process. Otherwise itus a shot in the dark. If you were a doctor, would you prescribe without seeing the patient? If the buyer gives you any problems, use this analogy.2. You have a right to know all of the selection criteria that will be used in making the fin
24、al decision.3. You have a right to know with whom youure competing.4. You have a right for a bid recap meeting after the contract has been awarded. Explain to the buyer up front that one of your conditions is that you receive at least an oral summary of how you compared with other bidders.If the buy
25、er does not treat you fairly going into the quote, how do you think heHll treat you after you get the business? Are you sure you want to do business with such a person?Before the quote Determine the actual buying authority before you submit your quote. Try and get the inquiry written around your spe
26、cification. Gather enough relevant information, such as:1. Selection criteria for products and vendors.2. Timetable for decision making and the delivery of products.3. Information regarding your competition.4. Bidding history of this account, and level of satisfaction.5. How do terms affect the buyi
27、ng decision?6. Does the suppliers location make a difference to the buyer? Ask if you can get the business even if youre not the low bidder. Ask what it would take for the buyer not to go out for a competitive bid. When designing your proposal, try to make it as unique as possible.Recapping your bid
28、 Get immediate feedback. Talk to as many people as possible. Discover who got the business, and at what price. Ask the buyer, What could we have done differently with our quote to receive your business? Follow-up to determine their satisfaction with their chosen vendor.Have you hugged your customers
29、 lately?Most companies spend more money and time pursuing new business than they do keeping existing customers satisfied. One study claims it costs six times as much to secure a new customer than it does to keep a current one satisfied. Hugging your customers means showing and telling them that you
30、appreciate their business.ISBN 0-944448-07-0, 172 pages, $19.95 (hard cover), published by Motivation Press, St. Louis, MOPlanningYour first major step in selling value versus price is in the planning stage. Here, you lay the groundwork for commanding a higher price. Your level of preparation determ
31、ines your success. There are two issues to focus on. The first is the value-added planning model, which shows you how to understand value from your customers perspective. The second is examining call objectives and how, by setting these objectives, you increase the likelihood of your success.Value-a
32、dded planning modelThe value-added planning model is a five-step process that enables you to customize a sales approach for a given account.Step one: Problem definition; Gather all information about the account relevant to the situation, such as the customer7 competition, market facts, your competit
33、ors, driving forces behind the customers needs, etc. List these facts on a sheet of paper and sort through them for relevance. It/s usually helpful to discuss the items with someone else.Step two: Vision clarification; Set short and long term objectives for the account.Step three: Needs survey; This
34、 step may be optional. You may discover you still need more information. If so, go back and fill in the blanks from step one.Step four: Study phase; Consolidate all the information youve collected. Brainstorm for ideas or ways in which you can add value to the sale for the customer. Ask yourself, Wh
35、at can we do to make the customers life easier? Your goal is to become so valuable that the customer cant afford to do business without you.Step five： Implementation; Prepare your organization to deliver thevalue-added services. Prepare the customer for the extras hell receive.Call objectivesThere a
36、re two important questions you must ask yourself prior to making a sales call. What do I want to accomplish on this call?This is your call objective. One could categorize seven reasons why you would call on a customer. Understanding which one applies helps you plan your strategy.1. Sell a product.2.
37、 Gather information.3. Give information. You want to become the single greatest information resource the buyer has. Educating your customer builds loyalty that cant be bought for a cheaper price.4. Plant seeds.5. Assure satisfaction.6. Handle complaints. Worry about fixing the problem, not fixing th
38、e blame.7. Gain referrals. What do I want the customer to do at the end of this call?Unfortunately, most salespeople fail to ask this question of themselves. The following are some ideas for customer-action objectives:1. Gives you a referral.2. Agrees to take your ideas to committee.3. Arranges for
39、a meeting with other decision makers.4. Gives you a purchase order.5. Agrees to try a sample.The opening stageIt could be the initial cold call or the lOOthtime youuve called on this buyer. You want to gain early control of the conversation (that doesnut mean do all the talking) and set a positive t
40、one for the remainder of the call. There are three critical elements; the introduction, stating the purpose of your call, and asking permission to probe.Introduction: Avoid giving too much information about your company at this point. Your objective is simply to open the call and set a positive tone
41、. Don”t overstay your welcome in the opening stage.Stating the purpose of your call: Tell the buyer why youure there, and state a benefit for him and/or his company.Ask for permission to probe: This is your transition to the needs-analysis stage. Itus polite to ask, and it also gets the buyer to com
42、mit to answering your questions.The three steps above should take less than one minute.The need-analysis stageMany salespeople make calls detailing their product assuming that the buyer needs it and knows he needs it. Donut make such an assumption. If you want to sell effectively you must first anal
43、yze the buyers needs thoroughly. This stage is a communicative fact -finding mission - an exploration into the buyerHs needs, wants, and desires. This is the most important phase of a sale because it enables you to correctly prescribe the right solution for the buyerus particular problem. Probing th
44、e buyerus needs highlights the non -price variables that affect the buying decision.Mechanics of questioningThere are certain ways to construct questions in order to get the information you desire. Consider length of response, intent, and bias.Length of response: Ask open ended questions, which enco
45、urage lengthier responses. Typically, such questions begin with why, how, what, tell me about，etc. and are designed to gain active participation. Avoid questions that would generate a simply “yes/no” response (unless you want a short response).Intent: How obvious do you want to be with your question
46、? How blunt or straightforward can you afford to be? Direct questions have a disadvantage in that they can be offensive and threatening (e.g,，”Do you have the authority to make this decision? Indirect questions can veil your intent and are a roundabout way of getting the same information in a less t
47、hreatening manner (eg, How does your purchasing procedurework?) Use indirect questions when you feel the nature of the question is risky enough to warrant some caution.Bias： Do you want an objective, factually based response, or do you want a mirrored echo of what you ask? Do you want the prospect t
48、o speak freely, or just agree with your assumptions? Do you want to encourage dialogue, or just lead the person? A neutral question offers no suggestion of what the response should be. It doesnut lead the other person, consequently they donut feel threatened. Remember that your objective is to gathe
49、r facts - not elicit canned responses.Strategic questioning areasIn addition to knowing how to ask questions, you must know in which areas to ask questions. Divide your questions into three categories: situational, competitive, and projective.Situational questions： What are your needs? These extract information about the
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