8/14/2013

Overcoming the price objection in direct sales

Want to know the key to making tons of money?




Then learn how to sell value over price. The key to buying decisions is gaining value during the presentation experience. Buyers want to be taught HOW they can get more for less. If you simple hang the jewelry on a wall at a home party or trade show and then step back and read a book…your customers will have a retail experience. They will be impressed with the beauty of the jewelry but would never appreciate the concept and the infinite value...and the result is lower sales, more frustration, and less success!

Highly successful direct sales professionals understand that their company relies on brand reputation and margin to maintain leadership and viability in the industry. As designers, you build long-term, highly profitable relationships when you sell value over price, because customers are more than willing to pay a premium for someone or something that truly delivers extra value to them. That is why it is so important for sales professionals to understand what the customer truly values.

·  Focus on helping the customer meet her needs rather than simply trying to sell them whatever your flavor of the month is. In order to do that effectively, you have to become highly skilled at asking your customer the right questions and listening carefully to make sure you understand their answers.

The challenge faced by most sales professionals is that customers cannot recognize (presale) the value of your solution without your help. When the customer does not clearly understand your value, they will focus on the one thing they do understand, which always comes down to price.

Many sales professionals are not very effective in this area. If they attempt to discuss value with the customer at all, they tend to say things like:
This product will help you look beautiful and have more jewelry to choose from
This “feature” will do this, and that “feature” will do that

As important as these points are to make, they don’t go far enough because they don’t clearly spell out the ultimate value of what is being offered. Selling value requires that salespeople have the ability to justify – in terms that the customer cares about – how the customer will benefit from their solution. Unless the sales professional can deliver this message and connect the dots very clearly, they leave the customer no choice but to view their solution as just another commodity where price becomes the only consideration.

Action Items:
  •   Try writing two or three different “Feature-Advantages-Benefits” statements that will connect your products and services to the typical needs of the customers you work with. Make sure that you provide a very focused benefit component that specifically defines how the product will solve the problem or meet the specific need of a customer.
  •   Review your current questioning and listening strategy. Are you asking enough questions with every client to be able to offer a solution that will clearly address their needs?


When asked to a group of saleswomen, “How many of you have had customers leave because of price but come back because the level of service they received from others was not what they got from you?" Eighty percent raised their hands.

So I told the 80 percent who raised their hands to ask those clients why they left for a better price and why they came back for better service. You can use this feedback when confronted with price objections. Also, find out what else they gained from spending a little more money with you--what are the long-term effects of doing business with you, and how does that offset the initial investment?

Compared to most jewelry out there… price IS one of our advantages, that's great. But remember, you need something that keeps the competition away and secures your relationships for the future. I remember seeing this sign:

Price, Service, Quality (Please pick two)
If you choose to lower your price, something else will suffer. No matter how tough the market gets, you'll have to stick to your principles to sell the value that differentiates you from your competition.




Simply put, if you want to sell value to your customer instead of being forced to discount price to close deals, the most important thing to remember is not to lead with product features and deals, because customers don’t by products (jewelry). Instead, they buy solutions that will give them the outcomes they need to make their fashion and attractiveness more appreciated. Therefore, before you can present them with an attractive solution, you must be certain that you understand the customer’s “hot buttons” so you can connect that solution back to the customer’s most important goals and desired outcomes. Mialisia designers more than anyone else….you or your customers should never think for a second that our jewelry is priced too high as long as you are face to face with them to explain your product/concept. I personally believe our jewelry is priced too low for what we really offer customers! But I understand the value of what our product and opportunity really is. Do you? Then you better determine this before your next home party.

Just know this, YOU have every reason in the world to have confidence that you have absolutely no competition out there in this industry. Period! You simply offer the very best quality jewelry at the lowest possible price….now that’s value!!

Good Luck Team!

Dave Nabrotzky

Mialisia Executive National Designer
www.HookedOnMia.com

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