how to get rich and how to make money from sales_58

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_{Zig Ziglar offers this explanation in support of a competitive price: "Our company made the decision to explain a higher price once rather than justify poor service and quality several times." Great line. I tell my students, "You only cry once when you pay a higher price."}

_{What is a competitive price? Research tells us that customers will pay 8% to 12% more for perceived value. Customers will put their money where their mouth is if you deliver a value-added solution—but anything over 12% and the customer may resist. For example, if your competition is priced at $1,000 you can charge $1,120 and still be considered competitively priced ($1,000 + 12%). Anything above the 12% may be too aggressive. Hence, your objective is not to match your competition at the $1,000 price but rather to price it higher due to the value you created. As a consumer, I'm sure that on more than one occasion you paid a higher price because you appreciated the service and attention you received. Your customers are no different.}

_{The best advice I can offer is that price should not be discussed during the Discovery or Confirming steps of your Sequential Model. Price is an issue you negotiate. Don't sell it. What I mean by "selling it" is that salespeople often try to confirm the sale by focusing the conversation on a discounted price. Sell a value-added solution during the call, not a price solution. Don't make price the focal point of the call.}

_{Understand the difference between price objection and price resistance. Price objection is a matter of clear opposition to your price—I can't pay it, or I won't pay it because we have limited funds, and so on. Price resistance suggests your customers have the capacity to withstand or tolerate your price. They may not like it initially, but they will pay it. Salespeople often respond to price resistance by immediately offering to lower it. Wrong thing to do. Try to focus on building value instead of reducing the price. Rarely is the sale based solely on price, so don't become an order-taker, getting the sale on little more than your good looks and a cheap price. Customers buy based on their perceptions of the overall value you present. So, how do you create a high perceived value? I think William Brooks answers that question succinctly in his book, Niche Selling. He offers the following formula where V is value, PB is perceived benefits, and PP is perceived price.} 

_{This formula clearly shows that the higher the PB, the higher the value: V increases as PB increases and PP decreases. For example; if we have a PP weighting of 10 and a PB weighting of only 5, then V=0.5. However, if we inverse the numbers where PB=10 and PP=5, our V=2. The first example where V=0.5 tells us that the focus was on price (PP=10). Our second example, where V=2, the focus was on selling benefits, thus V was four times greater than in the first example. The key to increase the PB is to focus on bridging the appropriate features to the benefits, as we discussed.}

_{Next time your customer says, "Yes, but what's your best price?" this is what he really means; "You did a good job here today Bernie. That was the best feature dump I've seen this week. However, you have failed to sell me anything of value so I have no option but to create value myself. The only way I can do that is by hammering you on price. If I get you down low enough, then maybe I'll see some value and buy from you." When you fail to create value, your customer tries to do it by way of a low-low price. Not a good way to sell. As one sales manager said, "The day we are the cheapest price is the day we sell this stuff by direct mail." Let's stop this order-taking stuff and focus on selling true value to our customers.}

_{Consider this: When you pitch features, telling versus selling, the customer sets the price. When you present benefits, a value-added solution, you set the price. It's your choice.}