Ten ways to add value and defeat price objections

by Bill Brooks

The concept of value-added selling has been popular for a number of years. In fact, several friends of mine claim they are the inventors of the concept known as value-added selling.

In today’s marketplace, where so many products and services are viewed as a commodity, the ability to add value to your product or service is an absolute necessity. There is no doubt that in the absence of value-added components, any product or service can be driven down to the most bottom line: price. 

The problem? When you are only selling price you’ll never be able to make high-margin sales where profitability, long-term growth and sales success resides.

Let’s take a look at 10 ways you can add value to your product or service no matter what you sell. Some salespeople might argue by saying, "You don’t understand, my product is different," or "My service is different." The truth is, every product or service can have value added to it.

1. Provide expert advice and a high level of professionalism
Lots of consulting organizations, accounting firms and medical professionals are paid a tidy sum for the level of advice they provide. However, as a sales professional, you must provide a significantly higher level of advice than your competition. You must offer a higher level of sophistication, wisdom and understanding about what you do.

2. Bundling and packaging
Bundling isn't just about the way your product or service looks. It's also about purchasing levels, inventory management services, cost cutting and higher productivity. Packaged together, these added benefits are more valuable than the product itself.

3. Service levels
Differentiate yourself by providing a higher level of service based upon your customer’s size, frequency or amount of purchase. For example, create gold, platinum or silver levels of service. The customer's status dictates whether customers receive the service for free or pay for it.

4. Frequent buyer programs
Customers who buy more from you earn more valuable service, pricing, benefits and related items. Think airline frequent flyer programs. Some people will fly thousands of miles out of their way to build up miles.

5. Transition and education
Provide transition teams to help new customers use the products or services you sell. The more education you offer about those products or services, the more they'll use them. Happy, satisfied customers eagerly buy more.

6. Recognition and reward levels
Make special customers feel special. Develop a customer "Hall of Fame" in your newsletter to feature customer accomplishments. It’s a fantastic way to build good will.

7. Qualitative preference
Treat special customers with the respect they deserve. Dedicate personnel, phone and fax lines and other services to platinum-level customers. Treat them better than the run-of-the-mill customer.

8. Dedicated technical support
Assign dedicated technical support people to handle technical products or services. The more familiar someone is with a customer’s account, products, machinery, equipment or business practices, the easier it is to do business with that organization.

9. Speed of service or delivery
Guarantee on-time or faster delivery. On-time delivery is a key component for charging full or maximum pricing.

10. Insider information
Publish a newsletter (electronic or printed) to regularly update customers about new products or services you offer.

Apply these 10 ways to add value to your day-to-day sales activity. They require creativity, innovation and a willingness to out-work your competition. But if you continue to sell the way you always have, price will continue to rule. 

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