Grants Gems -- Value

We've all spoken about how important it is to show the customer that they will benefit from choosing our recommendations. Demonstrating value, particularly value based on our differentiators, is always important. But sometimes it's REALLY important. Here are some examples.

There are some sales situations that are tougher than most. Especially when we are trying to persuade the prospect to choose us. The four instances when we face a particularly tough challenge include:

* We are displacing an accepted incumbent
* We are changing a process
* We are relocating control of a valuable process or asset
* Doing nothing is a viable alternative

If we are trying to replace somebody who is well accepted like the OEM, we have an extremely difficult job. In government bidding, incumbents win nearly 90% of all contract renewals. In fact, even if there have been problems and the decision maker is unhappy with the incumbent, they still win almost half the time. How do we overcome that? We have to show that we can offer such a powerful advantage in terms of quantifiable, verifiable results that staying with the status quo would be foolish.

If we are changing a process, we're likely to encounter resistance of another kind. Many people fear change. They fear that they can't perform under new rules, using new tools, with new processes. Several years ago, I was waiting to present our solution to a utility company. I heard a group of people clumping up the stairs to the conference room, and one woman's voice rose loudly above the rest: "I don't care what they've got, it won't work here!" She was, naturally, the manager of operations. Selling to that company had suddenly become much more difficult. Without even seeing what we had to offer, she had convinced herself it couldn't and wouldn't work. Why would she take such an attitude? At some level, perhaps not even consciously, she probably feared that if she were forced to change the way she did her job with another vendor, she wouldn't be able to perform. She would lose face and lose prestige. She would fail because she wouldn't be able to adjust. Changing a process creates risk for workers and their first instinct is to fight against it. One technique to eliminate the problem is show that the change may actually make their job easier and/or more valuable to the organization. Another technique is to go over their heads to senior management who are looking for a solid economic return and make the sale there. Either way, it will be tough.

What about relocating control of a valuable process or asset (call center)? Control means power, prestige, and job security. People are reluctant to give up control unless they're getting a huge return. They must get back so much value that hanging on to the process or the asset is no longer attractive. And it must be value that they care about, not some hypothetical benefit.

Suppose that individuals have kept important information on their local laptops. Now suppose a company wants to centralize all information so that everyone can share and have access to the information. What we may find is that many people are "protective" of their information to protect their job security. They don't want others in the company using "their" information. They don't want "their" information being used. So they will fight to maintain control. Or they will sabotage the effort to centralize information by withholding important bits of information. Or they will just refuse to use the system. Unless one can show them there is a huge return for themselves, these people are not likely to endorse the relocation of information to a centralized location.

Finally, there are situations where doing nothing is a reasonable choice. One of my partners provides complete facility management services for the data center. They can provide those services cheaper and usually better than a facility owner can do them for themselves. But outsourcing means loss of control, changing processes, and in a sense replacing an incumbent. Although my partner wins probably 20 percent of their deals, research would probably show that over 40 percent of all bids are being awarded to...nobody. The client simply decides not to make any changes. To do nothing.

We worked with the utility company to establish a compelling value and to calculate the ROI from outsourcing. We identified key differentiators and quantified how those differences added more value. And we made all of that as prominent as possible in meetings and presentations. The result? We won and have been continuing to win for the past 7 years.

The important point is this: if we find ourselves in a competitive situation that includes one of the four characteristics listed above, we need to allow ourselves extra time to put special effort into establishing a compelling return on investment or other measure of value. Otherwise, our chances of winning are small.

Editor's Note: Grant Stellwagen is an author and professional salesperson who lives in St. Louis, MO. With over 20 years' success achieving various 100%+ sales achievement and "Inner Circle" or "President's Club" awards, Grant's phenomenal track record in selling speaks volumes for his success. Click here to see Grant's Bio. You may reach Grant at 417-858-9191.

AspireNow helps organizations launch new products and services, train sales teams, and innovatively change businesses through cutting-edge business models and techniques to improve success. For more information, visit http://www.AspireNow.com.

> See more articles like this

> Contact AspireNow's business consulting team

Business Aspiration

Grant's Gems: "Demonstrating Value"