One of the biggest challenges in sales is getting buyers’ attention. And even when you do get a phone call set up, too often buyers on the other end of the line are clearly multi-tasking and not paying full attention. The panacea is to provide buyers with meaningful insights. Follow the five steps below to create deeper buyer engagement, which will lead you from initial contact to sealing the deal on renewals and future sales.
As we discussed in the first post in this series, Value Pricing: What to Avoid at All Cost, there are many different ways to set the price of your offering, including cost-based, psychological-based, and market-based pricing. Now let’s look at value based pricing and why it is the most effective way to maximize return on investment from your offering.
What’s your strategy for determining the optimal price for your B2B offering? If you check Wikipedia, the obvious source of all that’s true in the known universe, you’ll find 26 different pricing models or strategies. In this first of a new blog series focused on value pricing, let’s take a closer look and see how you can set prices that benefit both you and your customers.
Much is written these days about the changing nature of B2B marketing. The internet and marketing automation are changing how companies engage customers. Social media is playing a prominent role in shaping customer choices and influencing new trends. Some call these changes “consumerization” of B2B marketing, a potentially game-changing environment for some B2B marketers.
A compelling value proposition is critical to sales success. It can, without a doubt, make or “brake” a sale and is often the root cause when new products or solutions fail to reach their destination. Without a clear value map or an understanding of “what’s in it for them,” prospects have little reason to invest in your offering.
Have you noticed your average sale price dropping?
Maybe it’s because your salespeople are too quick to offer customers a discount when they’re challenged about price. As their manager, it’s up to you to coach your sales reps on techniques to avoid the price discussion altogether or at least delay it until the full value of your solution has been presented.
Here are three tips to help you coach your sales reps in techniques that will help them avoid price discounting and the price discussion altogether.
Most of your prospects will focus on price once they think they have found a product or service that will meet their needs.
It’s normal to want to know how much something will cost. However, it’s best to avoid responding directly to this question until you have established the problem and the value of solving that problem.
Figuring out what to charge for your product may seem as simple as adding up what it costs to make plus a percentage you call profit. Unfortunately, this “Markup” or “Cost-Plus Pricing,” method is commonly used in all industries.
If this is how you price your offerings, you could be leaving a significant amount of money on the table and hindering your future growth. Although things like market share, large margin above costs, or to follow the price set by your competitors are all factors to be considered in your pricing, they are not the ultimate goal.