Every business that has ever been started has done so by wanting to position its products or services on a continuum between the two extremes of value and price. Some businesses (think Apple, Ritz Carlton) are focused on delivering a high value experience. Some businesses (think Walmart) are focused on being the low-cost provider in their industry. Most businesses land somewhere in the middle.
4 Key Differences
Seth Godin calls discounting price the “race to the bottom.” He has said it is a race you can’t win and that it is a race you don’t want to win. Here are four keys to having success selling value and staying out of the race to the bottom:
- You must have table pounding conviction in the value that you and your firm provide. You can’t think it might be true. You must know it.
- You must remember that value it is never meant to be communicated. It is meant to be demonstrated. Said differently, you can’t be going around talking about value and telling prospects how good you and your company might be. You must demonstrate it by having conversations with your prospects that your competition is not having. Remember, if you must tell people how good you are, there is a chance you are not all that good!
- You must be willing to walk away when your prospect makes it clear that their buying decision is going to come down to price. I have a name for prospects like that – I call them “nonbelievers.” They do not believe in, nor do they have any appreciation for the value you bring to the table. Why spend a ton of time with nonbelievers?
- Finally, none of the above will work unless you prospect with the appropriate intensity. You must take a “Seven Eleven” approach to hunting, meaning you are always open and working to fill the top of the funnel. It is hard to walk away from an opportunity if you don’t have another opportunity to walk towards.
And no offense to Walmart by the way. It is a fine place to shop. Just don’t try to sell like they do. It is hard to “out Walmart” Walmart!
