Value Based Selling – Your Ultimate Guide
Value based selling (AKA value selling) is an important mindset and approach if you’re involved in consultative selling, because it can be the difference between positioning yourself as a specialist or looking like another commodity.
Many people go into their sales conversations with the wrong approach.
In this article, we’ll look at what value based selling is, the difference between value selling and price selling, and the step by step approach to value based selling.
Value Based Selling – Your Ultimate Guide
What Is Value Based Selling?
Value based selling is the sales approach of selling products or services based on what it will mean when they buy, and more importantly when they own your product or service.
People don’t buy products or services.
They buy what it will mean when they own a solution.
Many salespeople go into their sales presentations with the wrong approach:
- They build some basic rapport
- Their sales presentation begins
- Afterwards; they take questions
- Their potential clients raise areas of concern
- They try and ask or the sale/ or get back to them
As per our article here, this approach of selling is not value based selling, but what we would define as order taking.
By pitching or presenting too early, the salesperson hopes something will stick, and that their potential client will place an order.
Value based selling on the other hand is learning exactly what it your potential client wants to achieve, and then selling them a product or service that’ll give them the value they’re seeking in a solution.
Value Based Selling Vs Price Selling
As mentioned, value based selling is learning what kind of solution, goals or outcome the potential clients wants, and why they’re meeting with you in the first place.
What is it they’re looking to achieve?
There is a step by step approach to value selling, and we’ll cover that shortly.
Price selling is something many salespeople get caught up in; and is primarily based on when your potential client wants to buy based on the price or cost of your product or service.
Price selling is a usual approach for commodity type products, or things that are easy to acquire and not specialised.
However – even if you wish to position yourself as a specialist, your initial sales approach can hurt your sales efforts, and have your potential client shopping you on price.
How To Avoid A Price Shopping Situation
The best way to avoid a price shopping situation, is approach your sales strategy with a consultative, valued based selling methodology.
As previously mentioned, by going into a sales pitch too early or doing something we detailed here on Entrepreneur as ‘Premature Presentation’; you’ll be inadvertently telling your potential client that you aren’t a specialist, and that you’re there purely to make a sale.
To position yourself as a specialist, you need to ask a lot of various sales probing questions.
You’ll need to qualify them early, and ensure you’re meeting with decision makers.
By learning their pain, desires, budget and time-frame – you’ll be in a position to prescribe your product or service, versus presenting and hoping that they’ll be interested and end up buying.
Simply put – if you present too early, you’ll position yourself as a commodity and get price shopped.
If you ask questions and show you care; you’ll position yourself as a specialist and authority.
And this is the key to value based selling.
The Value Based Selling Framework
In order to be successful at value based selling, there are a number of key things you’ll need to learn, understand and implement as a part of your sales process.
A sales process is a step by step system that’ll help you:
- Have a consistent sales process, no matter who you speak with
- Use a structure; versus sales scripts
- It gives you certainty and security because you know what comes next
- Your potential client will have a positive experience, positioning you as a specialist and authority
In The 5% Sales Blueprint, we teach a number of key steps you should be following, so that you can maximise your value based selling efforts.
Value is subjective to you you’re speaking with.
If you’re meeting with and giving sales presentations to people who are not decision makers or would not benefit from owning your product or service, then your value based selling efforts will be dead in the water.
We recommend using a simple framework called BANT when qualifying potential clients.
Read the related article below to learn more.
Related article: BANT In Sales – How Does It Work?
Ask Powerful Questions
The difference between a normal, status quo salesperson, and a Sales Professional who positions themselves as a specialist and adviser, is the second asks excellent questions.
In The 5% Sales Blueprint, we teach our students the importance of using power questions to learn the key drivers behind why they want to buy.
People buy for two general reasons.
- To alleviate a pain point
- Move towards a desired outcome and pleasure
These are the psychological drivers behind why people buy.
Ask a large number of sales probing questions to learn their situation and mix it up using tie down sales questions.
The more questions you ask, the more you’ll get them talking; and the more you’ll help them sell themselves on the need for a solution.
Related article: 8 x Questions To Ask A Prospective Client
Know Your Product & Its Solutions
As a Sales Professional, it is crucial to know exactly how your product or service helps people who invest.
If you or your sales team aren’t 100% clear on exactly how your product or service fixes problems and gets them to their ideal result, then we recommend doing a team demonstration and brainstorming session in your team meetings.
In the article below, we’ll show you how to do this, as well as other ideas for your team meetings.
Knowing how your product or service alleviates pain and offers pleasure, is paramount in your value based selling approach.
Related article: 8 x Sales Meeting Topics To Share With Your Team
Valued Based Selling With Your Presentation
Finally; once you have asked questions, learnt their pains and desires, and have established exactly what it is they want to achieve, you’ll be in a position to present your products or services.
Value based selling means presenting your products or services in way just as a medical specialist prescribes a solution to a patient’s problems.
When presenting; clearly identify each of their pain points and desired, and then show how your product or service solves it.
Go into detail about the value it’ll provide by fixing the issue and providing a solution.
This bridge approach or gap selling, is an important part of value based selling.
Related article: 10 x Effective Sales Presentation Tips You Need To Use
Value based selling is an excellent consultative approach, and one we highly recommend in The 5% Sales Blueprint.
By value selling, your potential clients will see you as an authority and specialist, rather than an order taker- and try shopping you on price.
Your sales approach is crucial; and we recommend using a framework versus sales scripts.
If you’d like to learn more how you can close more sales using a proven sales approach, check out The 5% Sales Blueprint here.