The Keys to Selling on Value Instead of Price
Most companies make the mistake of selling their products based on price alone. As a result, they get in price wars with competitors and attract price shoppers who lack loyalty and just want the cheapest price.
Rather than selling on price, you should be selling on value. There’s a difference. Why do customers pay more for name brand products when they could get the same basic product at a cheaper price from a generic brand? It’s because they see the name brand product as higher quality and a better value.
Here are some ways you can start selling on value instead of price.
- Focus on the benefits—Too many times, companies get in skirmishes with other companies about whose product offers the most features. I’m sure you’ve seen the comparison charts some companies use to show how their product has more features than the competition’s. Stop talking about features, and start talking about how customers will benefit by using your product. How will your product improve their life? When you focus on answering this question, you’ll start increasing the value of your product.
- Study testimonials from satisfied customers—What do your customers love about your product or services? What problem did it solve for them? How did they benefit from using it? By reading your testimonials, you can get a better idea of what customers really like about your product, and you can focus your messaging around those things.
- Build confidence in your company—Why are consumers willing to pay more for a 2 liter of Coca Cola rather than buying the generic brand? It’s because they have confidence in the Coca Cola brand. They know Coca Cola. They trust Coca Cola. You have to build that same confidence in your company.
- Don’t water down your product’s value with discounts—What’s the first thing most companies do when they’re trying to attract more customers? They hold a sale. With the popularity of daily deal websites (like Groupon and LivingSocial) more and more companies are using discounts to attract new customers. But consider this. If you offer a discount on your products, you’re going to have a hard time convincing customers later on that your product is worth its regular full price. Discounts can water down your product’s value.
- Provide exceptional customer service—Increase the value of your products by offering a great overall buying experience. Intangibles, like excellent customer service, set your company apart and increase the value of your products. Focus on building relationships with your customers, exceeding expectations every time, and offering great service after the sale.
What tips would you add to this list?