Just when you think you have clinched the sale, the buyer springs a competitor on you, or someone inside the buyer’s company is suddenly suggesting an alternative method.
Either way, you need to prove your solution is the better buy, worth more in value and benefits than the unwelcome newcomer. Nothing does this better than showing the finance people how the total cost of ownership outshines that of the interloper.
Check out these nine amazing benefits of a TCO tool that can help take you the final distance to win the deal.
1. Make a direct comparison to a competitor.
The Total Cost of Ownership (TCO) tool pits the benefits and costs of your solution directly against any single alternative the buyer can bring to bear.
2. Show your solution’s net lifetime value.
The finance team knows that purchasing a new solution involves more than the initial purchase price. As it says in its name, the tool provides the entire cost of ownership over the lifetime of the solution, emphasizing the value it brings to your customer.
3. Overcome price objections.
Overcoming price objections with the TCO tool is the corollary of showing the net lifetime value. If the buyer is only looking at the purchase price as a comparison point for an alternate solution, the tool highlights another aspect of the price the buyer pays.
4. Shorten the sales cycle.
If the finance team or CFO sees in clear numbers how much a solution will cost over its lifetime next to the TCO for a competitor, an alternate solution, or the cost of doing nothing, they have a convincing reason for approving your solution instead of another. There is no dithering when there is money to be saved.
5. Highlights your intention to continue to add value after the sale.
Providing a TCO tool shows your prospects that you understand this isn’t a one-time deal. You are telling them that you understand there is more to the purchase than the initial payment. You expect your solution to keep on benefiting the bottom line.
6. Win more deals.
Obviously, if you can show the total cost of ownership and your competitor can’t, you have a weapon left in your belt after theirs is empty. Provide a complete financial picture of the ownership of your solution every time and more deals will be open-and-shut cases.
7. Provide a point-by-point comparison.
Show buyers the benefits and costs of your solution versus a competitor's solution or another alternative in a point-by-point comparison. A TCO tool goes head-to-head with the competitor. You can show more than an overall comparison; you can get into the details of how your solution comes out ahead.
8. Generate more revenue.
Close more sales and close them faster, meaning you generate more revenue within the same amount of time.
9. Show the cost of not solving the problem.
This is always the clincher. Show your buyer how much money is wasted by not solving the problem, and the deal will close itself!
The TCO tool is one of the best closers you can give your sales representatives. Even if they are blindsided by a last-minute entry, they can still have confidence in your solution’s ability to win.