“Emphasize value over price”

Winning a tender or new order is every salesperson’s dream. The network of networks has created a global village with limited or no barriers to market entry. Today, everyone is a salesperson. How can one win business from rivals? Numerous strategies are applicable to winning a sale; however, this article will focus on the masterstroke, value over price. Regardless of the quality of a product or service, if a salesperson lacks product knowledge, winning a sale becomes as challenging as a wild goose chase.

Cost-conscious customers tend to consider monetary value (price) as the differentiating factor when deciding what to buy. In Selling and Sales Management (2009), David and Lancaster suggest that customers are less concerned with the cost and more with what something is worth. To convince yourself that this is true, consider how much more consumers will spend on an iPhone versus a Nokia 3310. Both phones are capable of making calls, receiving telecommunication signals, and sending messages. However, one has a much higher perceived value than the other, higher than any actual difference in quality would justify. As such, a salesperson should emphasize the product or service’s value to win a sale. Faced with a prospective or price-sensitive customer, what’s the way to win the business?

Value can be defined as the intrinsic qualities, added features, or additional benefits, services, or functionalities that enhance a product or service beyond its core function. These augmentations differentiate a product from competitors, making it more attractive to customers and increasing its perceived value. The masterstroke in winning the sale is the salesperson’s ability to highlight and tell a story about value over price.

Storytelling in sales is a persuasive technique that effectively builds rapport and connection. By weaving a narrative of value into a pitch, you create an emotional connection with your audience that surpasses logic or price justification alone. For instance, when faced with a difficult customer, instead of focusing on pricing policies or import costs, a salesperson might emphasize the smartphone’s built-in camera, GPS, durable design, water resistance, and privacy features. Storytelling is a powerful tool in sales. By understanding the value of your product or service and your target market, crafting a compelling story, delivering it effectively, and following up to close the deal, you can create an emotional connection with your prospects, inspiring them to become long-term customers. Ask about color, model, delivery date, and quantity while avoiding price discussions. By applying this technique and highlighting the value of the product or service, a salesperson demonstrates that price is not the sole factor in purchasing decisions.

Every product goes through four stages in its life cycle, referred to as the product life cycle: introduction, growth, maturity, and decline. The most challenging stage to manage, requiring skilled salespeople adept at emphasizing value, is the maturity stage. At this stage, the product reaches market saturation, where sales level off and may begin to decline. The major goal at this stage is to prevent the product from entering the decline phase, which can be achieved through product rejuvenation. Rejuvenation involves adding benefits, finding new uses, or reaching new target markets, such as ginger-flavored mahewu or moringa-preserved beverages, which appeal to another segment due to added medicinal benefits.

COMMUNICATE VALUE 

Various forms of value should be communicated to customers to increase the likelihood of a sale. These include, but are not limited to, functional value (improved product performance, efficiency, or usability); convenience (ease of use, maintenance, or repair); and aesthetics (enhanced design, appearance, or user experience). Salespeople should communicate a commitment to following their product or service to its final destination, offering supportive assistance through training, support, or warranty services. Introducing new technologies, materials, or processes that improve the product adds innovative value, giving salespeople a competitive edge. For example, on 24 February 2022, Econet became the first telecommunications company to introduce 5G technology in Zimbabwe. Innovation is the value customers should perceive to persuade them to purchase the latest mobile devices.

BENEFITS OF EMPHASIZING VALUE OVER PRICE 

1. Increases customer satisfaction and loyalty 

2. Differentiates you from competitors 

3. Justifies premium pricing 

4. Promotes brand loyalty 

5. Enhances brand reputation and image 

6. Encourages upselling and cross-selling opportunities 

Conclusion 

By emphasizing value over price, salespeople can create a competitive advantage, drive growth, and build strong customer relationships. A product ages just like any living organism, but value addition is the solution to new life, new use, new markets, and a new premium price.

Author Misheck Nyawo, a certified MAZ Chartered Marketer with a Higher National Diploma in Marketing (HND), a Bachelor’s in Marketing (BCom), and a Master of Business Leadership (MBL). Regional Sales Manager for Codchem Pvt Ltd. Some achievements include winning medals at ZITF and successfully entering foreign markets.