Price Your Products to Value, But Don’t Stop There
Pricing your product offerings to value, that is, determining economic value to your customers and pricing accordingly is key to maximizing margins. However, setting a value based price is only one part of the entire value capturing process.
One of the most critical and overlooked aspects of value capture is at the point of execution. If the sales team is not selling on value, and specifically economic value, you will not likely capture full price. This results is a disconnect between price setting and execution.
Be sure that the customer-facing team clearly understands the product’s economic value and is able to communicate that value effectively. Many companies will do a great job of setting prices according to value but ignore the communication aspect. For specific value-based selling techniques, download our free guide: “How To Turn Your Sales Team into a Profit Engine; A White Paper for Manufacturers and Distributors.”
Don’t expect the sales team to be successful at selling a product that is priced according to value when they are unable to articulate economic value to the customer. Without this ability the sales person will likely revert to price discounting to close the deal. Instead, train sales teams to sell on economic value and provide them with the data and tools to support the value.
Read more about our onsite business to business sales training program, Selling for Profit™, or contact sales training speaker and pricing expert, Ralph Zuponcic to explore how value based sales training can revitalize your sales efforts at 330.342.0923 and start Selling for Profit™ today!