It is all about knowing your value…
As we begin this week’s lesson, one of the key
areas of what you do is to really know the “value” of what it is you do!
Value is in the mind of your customers:
This week, I had a coaching session with a
client, who is using Kijiji to advertise and promote his mobile auto repair
Now, I am not knocking Kijiji, but...the
customers that were inquiring about his services were all about price, they
were bargain hunters, bottom line.
Here is how to sift through bargain hunters and
it is simple and not time consuming, just ask what their budget is?
What would they like to spend?
Once you get an answer you can decide to take the
deal or perhaps, you need to educate them on your value and why your price may
be a bit higher.
In this client's case, he comes to your location
and can fix your car. That to me is worth the convenience alone. He does good work plus he had to do some hard
lifting...getting dirty, or underneath the car, making accurate assessments,
ensuring the job and your safety is taken care of...these factors or benefits
go into his price.
Your job as a business owner is to know what it
is that you bring to the table or to know what the key benefits
When you can share them with the client in a way
that educates and informs, I can almost guarantee, that your client will have
an "Aha" moment and see the value in what you do and may pay the
price you are asking and deserve.
Simply, ask what the client's budget is, then
assess, and share the benefits of what it is you do.
One other key to negotiating is to truly know
your business. Know your competitors,
know what they charge, (Competitors), and assess the pain your clients are in
If you understand what your competitors charge,
you can share that information and then go back to the benefits of what it is
you do and ask the client if you're offering and price seems fair.
If you can assess the costs of the pain or
challenge your client is facing, you can ask if your price relative to their
needs, pain and challenge, that they must solve or fix, is worth the price you
When costing or pricing issues come up with your
clients, always remember your value...
Value is the sum of your benefits.
In business terms, there are 4 key benefits to
1. Service benefits. What are the benefits
of your service?
2. Product benefits. What do your products
do for those that buy them? What matters to your customers in terms of both
your product and service?
3. Brand Benefits...is there a benefit in
the brand? If you are looking for an
example, think of Heinz ketchup, the benefit is the taste, the consistency...you
would be hard pressed to go to the grocery store and buy, No Name, Hunts, and
E.D. Smith, brands...however, French's ketchup is grabbing market share away
from Heinz, especially in Canada, since they make it in Canada.
4. Relationship benefits...what is the
thought in your customer’s mind when he/she comes to you? A good example of a relationship benefit is
the TD Bank. Do you remember those 2 older guys in their commercials a few years
ago? What they succeeded at in that commercial was driving home the
relationship benefit. You now knew that you could count on the TD Bank to be
open when you needed it to be on your personal schedule that suited your needs.
You knew, the TD bank was open late, then on
Saturdays and then on Sundays too!!! "What is the bank doing opening on a
Sunday?" Was the question, the two old guys asked in the commercials, and
then they would state, "in my day,
it was closed!"
If you are scratching your head about understanding
the benefits of your offering, look at these 3 areas for inspiration.
The Weekly 3: Where to find the value in what you
Past success stories with your clients.
What results have you helped your clients achieve? Ask them, they will tell you
why they bought from you and how you helped them.
Industry data. Let's say you are in a certain industry. Your
trade association will have data and reports on the impact your industry has in
the marketplace. Be a student of your
industry and share that information with your clients. For example, a home organizer or office
organizer can save the average small business owner 9 days a year from not
wasting their time looking for lost files and paperwork. Each industry trade
association should have this kind of information for you to use in your
marketing and sales messaging!
Knowing what it is you do to help a client and
get clear on the outcomes your clients get after they have used your goods or
services...also, know your own personal story and how it relates to what it is
you do. Why did you get into this business? Why should your clients buy from you? What makes you better, cheaper, faster or more
unique? Get to understand yourself.
So, the next time you get into a discussion on
price, educate the client as to what it is you bring to the table, plus get
clear on how you help a client and how it works? That is a major learning point as I close this
post. When you can clearly state,
"This is how it works" and share what it is you do in terms of the
process that you go through when you work with a client, suddenly, your value
and worth go way up.
In your mind, the "This is how it
works" isn't even worth talking about, because we take for granted what we
do for the customer, because it is so easy for us. It comes naturally.
But, when you break it down for the customer, and
share openly as to how it works and why it works, your customer will have a
different understanding of you, what it is you do and how you get them from
point A to point B.
Next time, don't haggle over price, just be clear
as to what you bring to the client and how it works, and they will now know
that the price you're asking is so well worth it!
Happy Selling and marketing!