Issue link: http://palletcentral.uberflip.com/i/819351
oo many organizations just sell pallets. If you're just selling pallets, you open the door to too much competition. The product is often the most commoditized part of your solution. When you sell a commodity, the buyer will focus on price. You can de-commoditize any solution when you bundle it with your value-added extras. The product is only one way to add value. Internal research at Reilly Sales Training reveals that product (pallets, nails and saw blades) represents 57% of the total value of a solution. The buyer places 18% of the total value on the company, and 25% of the value on the salesperson. So if you're just selling product, you're only presenting 57% of your total value. Salespeople often lead with a product sale because it's easy and familiar to them. The buyer makes a request for pallets and salespeople falsely assume that the buyer really wants a pallet. The buyer doesn't want a pallet, they need a pallet. Buyers want to achieve their business goals. Buyers purchase pallets to ship or store their own product which serves the needs of their customers. Your product is a means to a greater end. Helping the buyer achieve their goals begins with an in-depth understanding of their needs. However, most salespeople focus on the buyer's obvious needs. These needs include quality and service. These two needs are important, but too many salespeople claim to have great quality and outstanding service. If everyone claims great service and quality, buyers perceive your solution as the same. If everyone sounds the same, price is the only differentiator. Stop selling commodity products and start selling a value-added solution. Here are three tips to sell your value-added solution. 1. Guide the Conversation Down a Path of Value Value-added salespeople enter the sales process early and steer the conversation down a path of value. Being early allows salespeople to understand the buyer's definition of value. The buyer's definition of value is critical because it's not value until the customer says it's value. After you understand your buyer's definition of value, focus on the buyer's desired outcome. Detail how your value-added solution is able to help them achieve their overall business goals. For example, a prospective buyer explains it is critical to have a quality pallet that is going to deliver their product safely and damage free. In this case, the buyer needs a pallet, but they want a reliable solution that will safeguard the quality of their product. Too often, salespeople just focus on selling the need. Buyers are more price sensitive about needs versus wants. To sell your value-added solution, focus on what the buyer really wants. The want is the outcome the buyer hopes to achieve. These outcomes include greater profitability, lower total cost, reduced operating expenses, time savings and end-user satisfaction. 14 PalletCentral • March-April 2017 palletcentral.com T COVER STORY Selling Value in a Commodity Market By Paul Reilly