Author: Anders Christian Hjort
Just found this great picture on my Twitter feed this morning.
Average performing sales people get caught in this trap much too often start making unilateral concessions early pushed by the buyers demands, leaving no room for negotiations later and no room for growing the perception of value in the mind of the buyer stuck on a low price being the only valid buying criteria which it is never is.
Always, always, always talk value first in your sales conversations, and defer buyer initiative to talk price and negotiate early, and you will do both the buyer and yourself a big big big favour.
The Value Equation
Look at the value equation below:
The best sellers and organisations balance and optimise this equation by creating value in the mind of the buyer:
Value = Benefits – Costs – for the buying organisation
capturing value for their own organisation and pay-check also:
Value = Benefits – Costs – for the selling organisation.
The equation that works in longterm successful business relationships
Value does not equal Price.
Let the buyer know this universal truth of business early in your conversations, then both seller and buyer will end up being heroes in both organisations.
Challenged by a buyer mindset of “Price is the only thing that matters to me” you can challenge this back and say something like this:
“Peter, let’s talk the value you need first and park the negotiation for now. I’m willing to negotiate later on a win/win basis if you see the value in what I can bring for you. Would that be an ok start for this conversation?”
Price is what you pay – Value is what you get – Warren Buffet
Now, go co-create some value with your clients by asking great questions and having those rich business conversations that clients would love even paying for. 🎯
At Huthwaite International we have done a major global research study that uncovered some interesting truths on how winning organisations create and capture value throughout the buying cycle of the buying organisation. Feel free to read it here.
Tel: +45 2670 0356