Still Selling Features & Benefits – or Genuine Value?

Still Selling Features & Benefits – or Genuine Value?:by Jonathan Farrington


Most salespeople in most industries have now grasped the difference between features and benefits – hallelujah, I hear you mutter in undisguised relief. But unfortunately, most salespeople in most industries are still struggling to define value, so let’s see if we can clear some of the fog …
Truth is that when customers perceive the value of a proposition outweighs the risks, then generally speaking they will go ahead and make the purchase.
In fact, customers will often pay more for added value, which is usually related to one of the “Three Rs”:
• Reputation
• Reliability
• Relationship.
Good sales people are able to paint a graphic picture of what is at stake, quantify the value, and help the prospect understand how it will make them feel. It’s important to really believe in the value of what you are offering, so that you are better equipped to convince your prospects.
If you are unsure about the value your product or service can provide, you will project this unconsciously onto your prospects. Conversely if you are completely convinced that your product or service offers superb value for money then your entire communication, from your voice tone, your eye contact and your gestures will convey ‘VALUE’.
I would actually go further: If you are not convinced of the value of your products, services, company and even yourself, then you are going to struggle, so you might want to think about another career.
Some tips …
Present your price using the lowest possible denominator: Always break down the price into small chunks, such as cost per use or per week.
Example: “And you can enjoy all those benefits for just $200 a week.” The smaller the number the more attractive it will be to the prospect. And it helps put a manageable context around the prospect’s possible outlay.
If you are producing a quotation for a product or service that has multiple elements, itemize the cost for each element. This helps to build the value because prospects can see at-a-glance all the elements involved and the individual prices for each element will be lower than the total sum.
Offer the correct solution: If you have correctly identified the prospect’s requirements and proposed aligned solutions then the chances are you won’t be suggesting a ‘Rolls Royce’ version when the customer requires a ‘Mini’.
It’s much more effective to give the prospect something they have asked for and makes it easier for them to compare prices. Once the prospect is satisfied that your prices are pretty much the same, you have created a stronger platform to ‘up-sell’ from.
Focus on the difference: Focus on the difference between what they say they are willing to pay, and what you are asking for. This reduces the amount in their mind and is another opportunity to highlight the additional benefits they will gain.
Example: “You’ll get all these extra benefits for just (difference in price) a week more than you’re paying at the moment.”
Reduce the price only by changing the proposition: If you need to lower the price, then change the deal. This can help you to maintain your credibility and justifies the reason for you lowering your price. If you simply comply with their request to match a competitor’s price, you imply that you were asking too much in the first instance. Take out aspects of your proposition to bring the cost within their budget.
Compare initial price with long-term value: Ultimately, the price of something is what the customer invests now. The cost is what they end up paying in the longer term. A product/service that requires a higher initial investment may be more cost-effective and provide long-term better value for money.
For example, imagine two brands of dishwashing liquid. Brand A costs more to buy initially than Brand B, yet because Brand A is more concentrated, (feature) it washes twice as many plates as Brand B (benefit). So, overall Brand A is actually much better value in the longer term. In fact, if you calculate the investment per ‘plate’ then you have reduced the price to the lowest common denominator.

News: Obviously a big week in “JF’s World” Tomorrow, you will be able to see the results of three year’s hard work, when we officially launch my brand new consultancy – Jonathan Farrington & Associates. And if that wasn’t enough excitement for one week, we are also publishing July’s Top Sales magazine – more tomorrow.