The Difference Between Price And Value
Most agents and advisors know the difference between price and value. The challenge they face is how to ‘Sell The Value’ to their prospects. If you can’t do this and your sales strategy is based only on ‘sell based on price’ you will set yourself up for failure.
Regardless of whether you are new to sales or are a sales veteran, you must incorporate value added selling into your sales toolkit. To do this, a good starting point is to look at the two key principles behind every value added sales strategy.
Look at value from the customer’s perspective…
This is the most important principle because you can’t apply the other principles if you don’t or can’t identify a particular client’s value drivers. A product or service has value only when the customer perceives it to be so. This may sound like common sense, but surprisingly, it is not common practice.
What are the key skills needed to implement this principle? Quite simply, the ability to ask good questions, what are called ‘value creation questions,’ are essential as the first step in your value selling strategy.
Quantify your value proposition
The next step is to communicate your ‘value proposition’ as persuasively as possible.
One guideline that will help you to do this is to use specific, quantifiable ‘benefits’ that the customer will appreciate, such as reduced taxes, elimination of debts, tax free income for retirement, and so on.
An example… Which of these is most persuasive?
“We can show you how to be out of debt within 6 months.”
“How much better off would you be if you were able to pay off all your debts within the next 6 months, and then put those payments away for your retirement?”
“It’s not the answer, it’s the quality of the question.”
Here is quick tip from Don Pooley that goes on to explain the importance of perceived value.
How Is Your Value Perceived?
It’s all about perception, really.
We are paid less for what we know and do – what we think is our true worth – than we are for our ‘perceived value‘.
For example, I asked everyone who told me what E-book they’d buy, “What’s the maximum price you’d pay for it?” Answers ranged from $0 to “unlimited”. Most were $100.
But, we’ll layout over ten times that to attend conferences at distant places (e.g. MDRT meetings) with no idea as to whether anything we hear there will benefit us.
While a book, or E-book that we’ve chosen for its relevance may be far more profitable, and cost a fraction.
But we convince ourselves that the MDRT meeting has greater value that justifies its high cost.
This is not a criticism. We are all like that.
It’s an insight into our nature…. and the nature of clients, and prospects!
The greater it’s ‘perceived value’, the more we are willing to pay for a product or service.
This relates directly to our earning power. The more your ‘perceived value’, the more you are able to earn.
So the secret of making more money is to increase your ‘perceived value’ to your prospects and clients.
The operative word is PERCEIVED. They have to see what you are doing for them, and be reminded of you, and your value to them frequently.
So, what you are doing to help your clients understand how you benefit them?
And ask yourself if they actually ‘perceive’ it.
Don Pooley CLU, CFP, CHFC, “The Advisor’s Advisor” has shared his marketing know-how with audiences of life insurance men in all major Canadian cities, London, Australia, Chicago, New York, San Francisco, Hong Kong, and Singapore, and now in his free ezine. To get more ideas on marketing your services, plus free ebooks, subscribe now at http://www.eTIP.ca/