How can you prove value for money or value over cost?
I’m self-employed and offer a marketing consultancy service that is time intensive which is reflected in the cost. The bespoke service achieves great results and I therefore consider I offer great value, particularly in comparison to competitors. I wouldn’t view my service as a ‘premium price’ however, there seem to be an increasing number of businesses who are signing on price alone. I’d rather not waste time talking to people who just want the cheapest deal because often the customers who are obsessed with finding the lowest price turn into the biggest headaches. It’s got me thinking how do I go back to basics to demonstrate value over cost and clearly justify my “worth”? During my sole searching, I found some useful tips I thought I’d share:
Firstly, when you’re self employed it’s important not to take things personally and get defensive. Clearly, your value doesn’t decrease based on someone’s inability to see your worth. Come back to the facts – why are you in business? Value-based selling tools can be very cheesy but the essence is about figuring out what makes you or your products special (not necessarily more expensive) when presented in the right way. Focus on some key features and benefits such as superior knowledge, experience, qualifications, insurances, contacts etc. For product-based propositions, there may be more technical details to draw upon “it doesn’t cost more, it lasts longer” etc.
When inherent value doesn’t work, consider using your clients as your sales people. Gather quotes and build up your success stories by documenting them as testimonials and showing them in your marketing to prospects. Social media and LinkedIn are clearly designed to help to showcase your talent.
Be confident and remember your worth. Price confidence is key. Don’t be drawn into vacillating negotiations that compromise your time. Don’t be drawn into unprofessional conversations about competitors’ prices. Do stand firm and don’t lose your nerve. Experience has taught me that sometimes “saying no” to the wrong clients frees up your time to welcome the right ones.
Get to know your potential client and identify the scale of the requirement/ problem, the benefits of the solution and their views on cost with questions such as:
– How big a requirement/ problem is this?
– If this “issue” was resolved how would your life be improved?
– How exactly will you choose your supplier?
– What is most important to you a keen price or great results
– How will you know you have made the right choice?
Paint a picture of the full depth and breadth of everything your company has to offer. You are so much more that than just a product or service. You may establish great rapport with your clients, offer excellent customer services and the feeling that you genuinely care about them.
If all else fails, use an analogy: value is long-term, price is short-term; Stella Artois – reassuringly expensive; would you rather drive a banger or a BMW?
Do you have tips on how you demonstrate your value to your clients? Please feel free to share below.