Can you put a £/$ value to each component of your value proposition?

03 February 2014 by Charles Howden

Helping your prospect get a firm grasp of the £/$ value of your proposition moves the sales discussion into the territory of value, and when you are having a discussion at this level, issues around pricing fade into the background. Have you found this?

If you can’t put a £/$ sign on the front of each component of your value proposition, how can help your prospect understand the value they will receive from your product or service?

At it’s simplest level. If you are supplying a product with a 24 hour order to delivery cycle, against a competitor with a 48 hour cycle, questions like:

1) How much stock do you currently need to carry?
2) And what is that worth in £ terms?
3) How many days usage does that represent?
4) So our faster delivery cycle, 24 hours compared to 48, would give you a saving of (answer Q2 divide by answer Q3) in stock levels?
5) How would releasing that much working capital change things for your business?
6) What would you invest it in?

Questions 5 and 6 gives sellers true “consultant status”. Never mind extending the discussion to how much it costs to hold the stock in storage space, deterioration, and insurance costs.

Ask your sellers to step by step, explain to you how they help their prospects to arrive at a value delivered figure. The more components of your value proposition they can include in the discussion, the stronger their position becomes, and the higher the margins they will generate.

Leave a comment

These are a collection of our views about the world of selling, though please feel free to disagree and share you own views with us.

Simply add your view to the comments box below each story. We’d be delighted to engage with you…

CPV have taken the mystery out of the sales process and shown us how to do it for ourselves, now I feel much more in control of our business” – PW, MD Financial Services SME

Please share your contact details and we will respond...