We’re talking about the difference between selling value versus selling discounts or kickbacks. As we all know, the market is now in a state of flux. Inventory is low, demand is strong, properties are selling rapidly, and the majority of sales are going to the big players. However, as the market expands, as it usually does at this time of year, smaller players in the market have more opportunities.
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Though consumer discounts can seem attractive at first, tampering with price/value alignment has ramifications. You’re either offering your consumers less value or decreasing the value of your product in their eyes when you preach a “pay-for-exactly-what-you-get” attitude and then lower the price.
The perceived value of your product influences your future customer’s willingness to pay. Constant discounts erode this perception of value, lowering willingness to pay even more than free trials or other promotional deals.
Value selling is a sales tactic that capitalizes on a customer’s experience of receiving the item’s or service’s benefits in exchange for a purchase. In this approach, the sales dialogue focuses on how the commodity at hand can change the buyer’s life, rather than the product’s actual features and hard facts. Value selling also allows you to build deep and meaningful relationships that will stand the test of time.
Episode Highlights:
00:00 Introduction
3:02 What to do when the competitors are offering discounts to win business
12:03 How to prevent people from shopping on price
14:09 How to start to shift your mindset from selling discounts first to selling value first
18:05 Relationship building to beat out the discount givers
20:19 Value Propositions
24:42 Know your value and the experience you bring to the table
29:01 It’s ok to be competitive in a truly competitive situation
34:23 Delivering a price point vs. delivering an experience
39:53 Always be prepared to defend your value
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Website: https://www.lighthouseescrow.com
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