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Saturday, 22 September 2012

Selling against Value, with Price.

 

In these frugal days, Price,
or as Buyers refer to it “COST”, is a very important factor in their Decision Making.

Sometimes, clever salespeople reverse the Price Advantage by offering more VALUE.

It’s a Formula:
Value = Benefits less Cost

Their “Added Value” comes from offering MORE benefits to cover their EXTRA Cost (higher Price)

For example:

discountThey may claim that “due to lower running costs”,
their Total Value over five years is better than yours.
However, YOUR PRICE is less than theirs is, NOW!

 

 

So, “How do you WIN on Price?”

 

There is an embedded preference in most people.
In Human Decision Making we have a marked preference
for Rewards (payback or benefits) that arrive EARLIER.

 

People prefer Rewards sooner, rather than later.

Would you rather have $1 now or wait a year for $3?

If you chose a dollar now, then you are in the majority and you exhibit PRESENT BIAS.

 

You like the certainty of rewards now,

rather than the hope for reward at some future date.

A future which may, or may not, come!

discounts present biasWhen selling on PRICE, you have to appeal to your Buyers “Present Bias”.
The Value of a lower Price is available NOW.
The Value of “added” benefits only occurs over time and has a lower value than a Reward instantly available!

Who knows
if the projected value over five years will occur?
Who will get the credit, perhaps your successor?

The Time Value of Benefits discounts with time.
The certainty of reward and recognition of a lower Price, to you a lower COST, is available now.

 

 

So, when Selling on Price against a “Value” Seller, make sure you invoke the “Present Bias”.

Make sure your Buyer knows they can have their REWARD from you NOW!

How does PRICE link to Sales forecasts and missed Targets?

Read http://brianmaciver.blogspot.com.es/2012/03/ignoring-sales-forecast-and-missing.html?spref=tw

Wednesday, 12 September 2012

Do NOT spend money on Sales Training without doing a Sales AUDIT first

 

Dealing with Recession and Market Downturn
is causing many Companies to consider expensive or extensive Sales Training and Coaching Makeovers.

Do a SALES AUDIT first, before you throw good money after bad!

Our research [ The MAC Group, no connection to BMAC ] shows that in most firms,
more than half of all Customer accounts are NOT profitable.
Moreover, between 30%-and 40% are only marginally profitable.
It is only a mere 10%-15% of a Company’s Customer-Sales relationships
that generate the bulk of the profits”.

Upturn Down turnA Sales Audit MEASURES your sales force,
its individual and their total capability.

It measures your ABILITY to SELL your Product,
to your Market, against YOUR Competition.

 
A meaningful Sales Audit is a PORTFOLIO of appropriate
Sales MEASURES, for your particular Product-Market.

 

 

The Sales Audit is the baseline score (100) against which future Sales Performance, both Positive or Negative, can be measured and compared.

 

THIS IS NOT A QUESTIONAIRE OR PERSONALTY TESTS.

 

Sales Audits and Sales Assessments

The purpose of the Sales Assessment is to measure Key Performance Indicators and calculate the likelihood of Sales Performance Success. The process producing a Sales Assessment should involve a Sales Audit by an Independent Sales Assessment Professional; its purpose is to provide a measurement rather than to express an opinion about “quality” of Sales Performance.

Cost JustificationSales Audits should always be an Independent Evaluation, which will include some degree of quantitative and qualitative analysis, whereas an
Sales Assessment implies a consultative approach.

The Sales Audit includes both LEADING and LAGGING indicators as well as an overall Performance Benchmark.

 

 

A Sales Audit is an ESSENTIAL part of:

  • Due Diligence, Pre-Acquisition, Merger or Joint Venture
  • Pre-Training Project Management
  • Pre-Investment (or Re-investment)
    the Sales CAPABILITY is a key indicator of likely future success.

Contact brian.maciver@gmail.com for details it’s a LOT cheaper than a mistake!