How do you establish value?? Please share your methods!!

8 replies
I'd like to get views from warriors on how you establish value with your customers.

I'll start with mine.

From my experiences I've learned that, for the most part, the best value solution for a given problem is usually not the cheapest option.

I've also learned that for various reasons, I didn't want to pursue a pricing strategy based on offering the cheapest solution. Rather I wanted to concentrate my efforts on being paid for the value I provide.

That's easy to say but prospects will not simply accept, on your word, your solution as the best value proposition for them.

Here's how I position what I'm offering.

1. I believe strongly in educating prospects. In my mind educating=selling. Wherever possible, your marketing materials should educate your customers. I see many websites that don't do this which IMO is a mistake. Web real estate is cheap. Use it to educate and pre-sell your products and services.

When talking to clients, whether on the phone or face to face, you should be educating them. You don't need to get into the nuts and bolts minutiae but thoroughly answering their questions, addressing their concerns and giving a broad overview of what you're going to be doing and why is important. It establishes rapport with the client. Positions you as an expert and hopefully gives your client a sense that you really care about their business and the outcome of whatever service or product your providing.

But don't take my word for it. Think back to when you've had a service performed. Let's say you're having car problems. You take your car to the shop. They inspect it, tell you what's wrong and throw out a price for repair.

The second shop you go to also inspects the car. They come to the same conclusion that a repair is needed but they dig a little deeper while providing you with additional information. Maybe the part failed prematurely and the mechanic discusses possible scenarios with you about what could have caused it and what you can do in the future to prevent it. The mechanic also shows you the part lets you know what it does, why its important and what will happen if its not repaired.

Which shop would you want repairing your car??

2. The service your offering is secondary to your knowledge and experience. So, if you're selling mobile websites well that's not really what your selling. Your selling your knowledge of how to make a mobile website generate customers for your client.

If you're just selling a website, you're a commodity and can be easily replaced. But when you position your knowledge and experience as primary, and that a website just happens to come with the deal, you become much harder to cross shop.

Also emphasize benefits of whatever service or product your providing. Remember you don't buy a drill because you want a drill. You buy a drill because you wan a hole.

Find out what your clients wants and talk to them in those terms, emphasizing those items.

3. You're a businessman/woman..ACT like it.

This was a problem I had. I was overly stiff. I'd converse like had a stick up my A**. Very formal, and now looking back on it, I'm sure I didn't make the impression I wanted.

Remember you're a business owner, same as your prospect. Get rid of the automaton act and be a real live person. Talk to them on their level not like you're some poor soul grateful for whatever scraps they might throw your way.

That's all I got.

Please share your methods and views.
#establish #establishing value #sales #share #views
  • Profile picture of the author Jason Kanigan
    Those who have followed some of my videos & posts will know that I recommend not even bringing price up until later in the process...after you've determined the level of need the prospect has for what you offer.

    Getting the prospect's attention and starting to show value begins with sharing with them typical reasons people in their industry do business with you. This shows that you understand their business (one of the top reasons, if not the top reason, people choose one solution over another despite price). If they are experiencing one or more of these reasons, then they also demonstrate to you that they have an urgent problem which you can solve. Now we're getting somewhere.

    Next I get the prospect to calculate the cost of leaving things as they are--how much they're losing in revenue a month, or losing in costs, if they do nothing. I may give guidance on categories they haven't thought of, but let them do the math. Then the number is indisputable, because they made it. Now we know how big the problem is.

    If they have urgent pain, and the problem is financially large, you can now price your solution. It could be a percentage of the size of the problem (eg. 3 months' total compared to the value for the whole year). Or if you don't want to do it that way, just compare your low price--or range of solutions--to the huge cost of doing nothing. No-brainer, right?

    So value comes from good questioning skills to ascertain the urgency of their pain, guiding the prospect but allowing them to calculate the size of the $$ problem on their own, and then figuring out your solution's price as a small portion of that.
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  • Profile picture of the author genetic
    I don't beleive that educating=selling.

    Selling is selling. Don't allow clients to use you as their personal free consultant, why would they ever pay after that.

    My reccomendation is to spend the time with the client gathering information. After all you need to figure out exactly what they need before you can give it to them. No education necessary there, remember a top class surgeon makes more than the professor that taught him everything he knows.

    Here's some steps to take:

    1. Find out what their main problem is.

    2. Find out how much it's costing them

    3. Show how you can solve that problem

    4. Set your fee so that the ROI from using you is a no-brainer (remember to use figures they've given you yourself to clarify this).

    Basically, intelligence is where it's at the more you know about them, the more money you'll make - not the other way around.
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  • Profile picture of the author Jason Kanigan
    Hi Genetic, you're absolutely right. All giving a free education does is produce a disappearing prospect who is off to get what you offer at the lowest price.

    Sell first, educate later. The prospect does NOT need to know how what you do gets done...just that it does get done. Do you need to know everything a surgeon does to have an operation? Everything a lawyer or your accountant does to keep you out of trouble?

    By the same token, your prospect does not need to know all the other amazing things your product or service does beyond the one or two things they really need it for--until after you've sold it to them. Sell first, educate later.
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  • Profile picture of the author genetic
    It's true, and probably the biggest mistakes newer guys make (educational selling "gurus" don't help either). So many guys become consultant, professionals in other words, and don't seem to demand the same respect other professionals are accorded.

    Could you imagine your accountant taking the time to constantly teach you about how to lower your taxes, before you were even a client? It would be nuts.

    When in doubt think: would an accountant with a large client base do this?

    If it's no, then don't do it
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    • Profile picture of the author David Miller
      I've always taken the phrase "educating the customer" to mean teaching them how what they are currently doing can be improved upon, replaced, or otherwise enhanced by buying what I'm selling.

      I don't believe that a majority of prospects really care to know HOW things get done, just that they will get done.

      When I need to have my brakes worked on, I don't want to know how my mechanic is going to do it, I assume he knows how and frankly if I knew how perhaps I could or would do it myself.

      I only want to know 2 things:
      1. Will my car stop when I step on the brake
      2. How much will it cost

      I don't want a course on brake repair.
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      The big lesson in life, baby, is never be scared of anyone or anything.
      -- FRANK SINATRA, quoted in The Way You Wear Your Hat
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  • Profile picture of the author RickDuris
    A high price is one of the strongest ways to establish value. It speaks volumes.

    Being laser focused on delivering ONE service exceptionally well implies great value.

    Being associated with other high value people and businesses creates an "I gotta have it" effect in the prospect.

    - Rick Duris
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  • Profile picture of the author sdentrepreneur
    Here are my top three methods for showing value when selling Social Media and Internet Marketing.

    1. Lead Gen - Create a sales funnel to prove to client they are getting leads from my efforts
    2. Social Media Following - Facebook Likes and Twitter Followers
    3. Google Analytics and Alexa Rankings - Show clients before and after growth and web traffic.
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    Learn Digital, Internet and Social Media Marketing For Your Business
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  • Profile picture of the author Jason Kanigan
    @sdentrepreneur: those are good ways of showing clients value after they have become clients. Do you show your results for similar firms to prospective clients to generate credibility? Or do you do something else? Just curious...
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