Value pricing is a customer-centric strategy that sets prices based on the estimated economic value of a product or service rather than purely on market benchmarks or internal costs. When executed correctly, this powerful approach can increase profits and customer satisfaction. The challenge is aligning price with value delivered.
I was very intrigued when our client declared they would also be using their value selling tool to evaluate and prioritize their product development roadmap. Although we specifically designed the tool for marketing and sales, the more I thought about it, the more this strategy made sense.
The stakes are high in today’s hyper-competitive sales environment. Having a compelling offering remains fundamental, as does the need for a well-structured business case that quantifies ROI. Here’s what your sales team should know about business cases before they submit their next proposal.
A well-crafted value proposition has the power to catapult your business towards sustainable growth and better market performance. However, it can be a challenge to develop a unique value proposition that captures your prospects’ interest without using industry jargon and meaningless buzzwords.
Developing a solid business case is a critical step in the B2B sales process. It involves creating a clear and comprehensive argument that presents the financial benefits of a solution so that a customer can make an informed purchasing decision.
I recently reflected on what might cause sellers to reassess their value pricing and value selling strategies in a changing economy. While both are rooted in value, value pricing and value selling use different tools with different purposes and reference sets. Let’s take a moment to review the basics.
The biggest gap between sellers and buyers is a shared understanding of a solution’s value. This gap leads to long sales cycles or worse, deals that just fade away. Overcoming this chasm can be accomplished using value selling tools, which function as a Rosetta Stone to unlock insights for both sides.
Labor savings is the value dimension most often challenged by prospects when building a business case. Why is it so tough to get customer buy-in for your labor-saving estimates? While the answer will vary by company, these hesitancies are often at the core.
Value propositions need to be constantly refreshed as customer, competitor, and market dynamics change, which is all the time. Successful, energetic companies embrace this renewal and use it to sustain ongoing profitable growth. Let’s examine more closely why and how to adopt this approach.
When meeting with C-level executives or a VP of Sales or Operations, I am often asked how and when to introduce selling value to their sales team. They all believe in the importance of creating a value-based sales strategy, but they struggle with its implementation.
