If you own a business or are involved in sales consider that you need to add value to your customers. It’s not enough that you merely show up and have access to a particular product or service, you need to add just a little bit more.
Can you add value to anything?
I recently took part in putting together a proposal for a large government project. At the job walk were 12 other companies ranging from small businesses to large manufacturing concerns. The specification, as usual, was written favoring a particular project but had the all important “or equivalent” statement included in it. This meant everyone there would be able to offer a product that meet the specification.
How do you differentiate yourself in such an enviroment? Price? Keep in mind that this was a government job so price is going to play a larger factor than in the private sector, but differentiating yourself or your product on price is a bad, though often used strategy. Long term, trying to always be the low bidder is a ticket to failure for reasons I’ll go in to in a later post.
No, instead of price we need to set ourselves apart by adding value in some other form. I wrote yesterday about “Critical issues.” Understanding the issues important to your customer is the first step because you can position yourself as the value added provider. This is a good position to be in, but there are other ways you can add value in the marketplace.
Before I offer some suggestions let’s do a thinking exercise, how have you sought to differentiate yourself form your competition? What value to you add? Quality, value and service are not items that will set you apart from anyone. Ask any business or salesperson why someone should buy form them and they’ll answer, “We offer better quality, value and service.” Really? The key is to identify what exactly this quality, value and service is made up of. Yeah, we need to think about it, and thinking is work. But the salesperson who puts in the work will, 9 times out of 10, beat the salesperson who just shows up.
{ 19 comments… read them below or add one }
In the UK, the grocery supermarkets tend to have 3 tiers of value/quality for the same own branded foodstuffs (e.g. meat, bread, yoghurt etc) – a high quality higher price range, a regular quality regular price range and a lower qulaity lower price range. That way the customer can make the quality/value trade-off without the provider having to second guess for the prospective customer.
martin-wright.com
From Change Management to Spontaneous Change
Hi Steve,
One of the ways I differentiate myself as Dating and Relationship coach is not only in terms of the group I best serve (Baby Boomers, and Boomer Women). But then I got myself thinking more about those two groups. The majority have been through at least one divorce and/or are widowed. In fact, having to identify that half way into working together and address it was pretty much always part of what I had to do with clients.
Then I shifted. Not only did go get certified in the one process I found after 7 deaths in 6 yrs to help and did something with the emotional part of grief. I not only offer this additionally to my same clients, I now also offer it as an additional entry point to working with me whatsoever.
Kinda like offering more ways to accept payment.
And then singles do a LOT better in the long run. Like scrap and prepare the wall is a value add (ok, I think of it as essential) to the Painting Project that must be done. And if you’re a painter, the prep work could be outsourced, sub-contracted if THAT is not your greatest strength.
Value Add is starting to get me thinking about affiliating and JVg! I could write a whole book on that. So I will just end my lengthy reply comment now.
Happy Dating and Relationships,
April Braswell
Single Baby Boomer Dating Success Expert
Steve,
I’ve worked with salespeople for over 20 years now in my career.
I agree that added value is a must unless you’re spending other people’s money
I’m trying to add value to Lane Resources Inc. each month by learning from others like yourself then put it into action.
Lynn Lane
Success Today
Value… value.. value… I get it!!!!
http://www.salesjunkie.net
Steve,
When I add value to my service, I bring out very minute details towards my clients. Something for them to remember me by. I try to “enhance” their experience with me.
Terry
http://www.terrytom.com
And if you can show them exactly how buying your product will pay them back in money, happiness, health, lower stress, etc. AND PAINT THAT PICTURE EFFECTIVELEY with them in it, you win…
Seize the Day,
Rob
Sales Tactics For Small Business Owners
Funny thing, I just submitted a propsal to the state parks department.
I don’t have the opportunity to present the bid in person, but the cover letter goes heavy on the histroric value added by using our company to construct a sign roof structure.
The project is an addition to a historic ski lodge… Wish that i knew what the powers that be really care about, save now or better historic value. What do you think Steve?
Two bidders, myself and my uncle… I’m 7K high… family christmas might be kinda rough this year!
Decision by officials got delayed… we’ll see what happens.
Mr. P
BusinessAndMarketingMakeover.com/blog
The thinking exercise is a valuable one; one that can mean the difference between success and failure in business.
Health, Fitness for Working People — Darryl Pace
That’s a great idea to add value to your customers, I’m just not sure I’d know how to do that. My clients are just parents who need a trustworthy babysitter to care for their kids.
Lisa McLellan
Babysitting Tips, Babysitting Services – Babysitters, Nannies, and Au-pairs
If it was all about price and not value we would not need salespeople, and people wouldn’t be eating at the nicest restaurants, and drinking the most expense wines. Just he experience itself an be an added value.
Robert Maritn
http://www.carbuyinghq.com
I differ from others because of my broad experience and laterial thinking. I’m an ideas person and I can problem solve rapidly. When is handy with this computer….
Keri Eagan
Anything Alternative
It’s not just about price. When I first started my practice, I kept my fee at the lowest part of the average range for my area because I was knew and did not feel qualified to command the top of the range or even more than that. Whether I was good or not didn’t matter because I actually lost clients when I later found out it was because they couldn’t understand why i was so cheap! A lot of time less expensive = poor quality. No one wants a sale on a good therapist. Lesson learned very quickly.
Jen B
The Harwood Center – Tinnitus, Chronic Illness, Fears, and Anxiety
I can make value added fruit– just coat it in chocolate!
Greg Dougall, Intellectual Property Pioneer
When I was in construction we differentiated for the client by offering to get the job done on schedule and under budget. For a $140M job, that would be pretty compelling. If we missed the deadline or budget we’d have to forfeit part of our fee.
Contingency fee schedules aren’t new, and they go a long way toward meeting the client in his mind. Show your confidence, be willing to shoulder some of the risk and don’t forget to participate in the upside.
Now that I work with small-mid-sized businesses, I take either a piece of the continued revenue stream or an equity stake with dividends when I get the job done. The incentives are aligned between client and consultant. If he wins big, I win big.
Pushing companies from good to great, Kate
Value added fruit. I love it! Great photo!
I like Greg’s idea of dipping in chocolate, or perhaps in the photo they’ve added extra vitamins to the fruit.
Healthy Living, Katie
Albert Einstein’s saying come to mind:
Try not to be a success but to be of value.
John Ho
Numerology Expert Birthday Numeroscope
Helping your customers see the value of your product/service is extremely important.
Jose Escalante
http://www.JoseEscalante.com
I like the Einstein comment!
Anthony
http://www.anthonylemme.com
That last paragraph says it all – The key is to identify what exactly this quality, value and service is made up of. I would be sold if I went in to a business and they spit this out without thinking. Great thought to ponder.
Vicki http://www.bridalthreadshq.com