Streetfighter Selling for Sales Professionals
  • Mar
    13

    The Death of Selling Value???

    Filed under: Uncategorized;

    “That ‘selling value’ stuff is really out the window, isn’t it?”
    I got that assessment from a salesrep recently.
    Tough times. Heavy price-point competition. Yea.
    It’s all about price right now.

    Is it?

    No doubt, we’re facing turbulent times and most buyers will say that ‘price’ is number one on their agenda. I know what’s happening out there. And I know that buyers, when they’re actually buying, are being super price sensitive.

    I’m not going to blow smoke at you and pretend it doesn’t matter. It does. But it is not…IS NOT…the top criteria and should not be treated as such.

    Take a look:

    The lowest price is still not winning the sales war. A Time magazine report this month says “it’s not cost…it’s cost-efficiency.” Business practices like buying cheap can tie up desperately-needed cash in large inventories, cheaper products or unreliable delivery schedules. Manufacturers want smaller, just-in-time inventories. Consumers want shorter commitments and more flexibility (i.e. their cell phone plans).

    In a separate study, BrainNet Supply Management Group talked with 155 purchasing managers, finding that “strategies based solely on cost considerations are becoming less prominent.” (That’s LESS in a time when we’re telling ourselves that price is everything!) Savvy companies are taking advantage of the economic downturn and making partnerships with suppliers who can help them maximize the big-picture value of their operations. It’s up to us to look hard, ask questions and find those value propositions.

    Still, there are those situations where the answer is price, and only price. Just don’t accept it as fact too quickly.

    Every time you play the price war, remember that the winner also loses. The sale, itself might be unprofitable. And having a low-price image is hard to come back from when the market recovers.

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