This weeks
Article....
Top Salespeople
Avoid Commodity
Selling
How even TP can be elevated to a higher level.
Are we talking about
Beans, Pork Bellies or Gold? How about
Bread, Beans and Copy Paper?
The reality is most
salespeople tend to turn a very unique
product/service into a commodity in the
buyers mind. As a result, the sale ends
up being a price war and much harder work
than it need be.
Now what is meant by
"commoditizing" a product or service?
…..
Most buyers would agree
those items such as bread, beans,
gasoline, copy paper and other high
volume and daily use products are
considered being
"commodities". In
general, these are not necessary sold on
value but rather bought on price. There
are many sources for these "commodities"
and generally, the competitive sales
point is price.
When your customer looks
at your product/service, is the
conversation all about price? Is it about
the best deal they can get? Is it about
leveraging you against your
competition? These
are all indications that your
product/service has become "commoditized"
in your customers mind!
Therefore, if your buyer
is looking at your product/service as a
commodity you will need to evaluate how
you are selling it!
Here is a personal
example: All of us end up using the
bathroom in a high quality restaurant or
hotel from time to time. Personally I
have had toilet paper that shredded, so
light you wondered if you had any,
rougher than cardboard and of course soft
sturdy stuff that really worked. I am
sure the Ladies can relate.
Now I had a great room and
steak, but the experience in the bathroom
reduced my "total customer
experience". "Such a
great place and they skimp on the TP!
Why?"
Why, because the
salespeople have "commoditized" the item
known as TP. "I can
supply that stuff for less per case." Is
the pitch and the buyer says
great. Neither
the salesperson nor the buyer consider
the impact on the end user and on the
experience provided. (Could have a pun
here)
Who has failed here? I say
the salesperson has!
The salesperson has taken
the easy way out and not assisted the
buyer in viewing the total impact of
their choice. Rather than engage the
buyer in a conversation about their
guests experience and the image each and
every item has on that experience, they
drop the price bomb and create a negative
for all parties.
Here are some ways
salespeople end up "commoditizing" their
products.
·
Always approaching and
discussing price and how to lower the
price or save quick
money.
·
Doing similarity
comparisons, their product and the
competition are similar in this
way.
·
Always presenting
facts/features/benefits rather than
discussing end results.
·
Shortcutting the buying
process to get a quick
sale.
·
Hearing only the common
words and missing the key ideas the buyer
is conveying.
·
Being unwilling to alter
their approach and process, thus being
very predictable to the
buyer.
Should you discover you or
your sales team doing any of these, stop
immediately! It is costing you PROFIT!
This I
also allowing competitors in, reducing
buyer loyalty and the buyer views you as
just another salesperson pushing
commodities. Is that
what one really wants?
To un-commoditize your
product/service the consultative, results
oriented salesperson takes a different
approach.
First, the focus is not on
the product such as TP. Rather the focus
is on understanding the buyer, business
and what they are trying to accomplish
with the business. The
salesperson knows every choice has an
impact on other areas. Their job is to
help the buyer clearly see and understand
the total impact of their
choices.
Here are some of their
actions:
·
Open questions, open
questions that cause the buyer to
think.
·
Emphasize the uniqueness
they provide and how it adds value for
the buyer
·
Causes the buyer to view
all the impacts to the business and
guests
·
Communicates value added
versus low
price
·
Is unwilling to compromise
their value and company values for
price
·
Understands the strongest
position in negotiations is the ability
to walk away
·
Focuses on long-term
productive relationships versus short
term sales
·
Creates opportunities for
the buyer to make great choices and look
good.
The challenge is not being
caught up in the commodity talk, even if
the buyer uses commodity language. The
Salesperson's job is to steer clear of
the commodity approach and direct the
buyer to a results and opportunity
oriented discussion.
If one is on guard against
commoditzing their product, then even TP
can become an important part of a total
customer experience!
What kind of outcomes can
your product/service provide for your
customer that keeps it from being a
commodity? List a dozen and then use
those outcomes in all your selling
conversations. It will amaze you how your
customers respond!
Harlan
Goerger
© Harlan Goerger 6-09
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