Is It Possible To Sell Based On Value Not Rates?
Why should someone buy your product over someone else’s?
Selling based on hourly rates is undoubtedly the easiest way to determine how much you should charge for a service/product, however, do your rates display the value said product will have on a customers business?
According to Inc, if you want to sell value then you need to do your homework. Ever advancing technology means customers can compare prices and companies by just typing names into Google. You want to choose your potential clients wisely, and if you want these potential clients to choose you then you need to have a lot of confidence in your product and it’s capabilities.
Comparing your own product to your competitors’ will give you an idea of how much you should be charging. Most people will pay for quality, if your product is slightly more expensive than another, similar product, justify this. Show the prospective customer why they should pay the extra, explain to them what makes your product stand out.
Being confident in your own product means understanding it’s worth. If you’re using terminology such as “usually we charge…” then the customer will assume you’re open to discussing a price reduction, which you definitely shouldn’t be. When selling by value it’s important to explain that your price insures value, if someone wants to pay less then the product itself will be less advanced as more corners will be cut.
Brian Tracy international describe buying mentality up in one simple sentence,
“People don’t buy products, people buy the results the product will give them”
When people can see proof of your product’s results for themselves, they will start to gain confidence in your company. Honing in on, and sharing, your strengths, experience and customer testimonials give the customer this desired confidence.
Value selling means you need to make sure your customers are aware of the value they will experience with your product. The more you focus on the benefits your product will bring to their company, the less the price will be mentioned and the less important it will come.
People just want to know how much they have to pay for your product, they’re not bothered about how much time it will take your team to build, so why would you sell based on hourly rates. Selling based on value proves you believe in your product 100%.
At the end of the day, every company wants loyal customers and loyal customers want to invest in a product that will work for them. If you want to attract these customers then you need to prove your product is valuable to them!