“What are you competing on? And what do you pitch?” To the former, the average sales person is clueless; possibly because he was never told, but much more likely because he has resigned to sales resistance. Which is why, to the latter question, assuming he’s honest enough, he’ll say, “Price.” More accurately, he’ll lament thus: “We (not I) cannot sell because our price is high. Customers just want to know what the price is.” Are your sales people aligned to your competitive selling strategies in business?
The Disconnect in Sales : business strategies for competitive advantage
If not, the disconnect is costly to both his, and therefore the business’, performance. For example, whereas the business owner believes his business is competing on superior products and seamless processes, those charged to articulate this competitive selling strategies in business (his salespeople) could be competing on price. Consequently, sabotage kicks in.
Read: Defend your price by showing the buyer his cost
The Heat of Sales Resistance
Now then. The literal and metaphoric heat can easily wear down a sales person. Those selling, say log book loans, are exposed to both – the scorching sun and intense sales resistance. Others, say those selling pest control management, may feel it metaphorically in this manner: “But your competitor is selling this thrips trap at about 20% less than you.” Hearing this, the sales person experiences tunnel vision. He sees only one thing- price. Yet, the remedy is simple yet profound: refocus the conversation on unique value propositions. So, respond thus: “(Name of competitor) is a player in this market. Our point of difference is that we have customised and localised our trap to meet pest movement specs. Thus, buyers will buy it only once.”
Long-term Value over Short-term Cost
Such an approach to competitive selling strategies in business, invites the customer to consider the long-term value rather than the short-term cost. But, you’re not off the hook yet.
“Are you saying that if I buy from your competitor I’ll need to buy it again?” Or. more likely, “Ate you saying (name of competitor) is lying?” A savvy salesperson will navigate this conversation without disparaging the competitor.
Read: Gossiping about competitors will tarnish your credibility
” Unfortunately, I cannot speak to that. What I can say is that the 15cm width tape optimises both the uninterrupted growth of your roses and is perfect for trapping the pests. Here, let me show you…” Or, the customer points out, “Your competitor has this product that kills (name of pest) and it’s cheaper than yours.” The inexperienced salesperson curses in his head, “Argh! And I keep telling them, price is a problem and they don’t listen. Now see.”
Read: 4 reasons why blaming ‘They’ in Sales weakens you and your sales
In contrast to the average seller, a seasoned seller steers the conversation towards the product’s unique selling points:: “(Name of competitor) is a player in this market. Our point of difference is that our liquid formulation makes it much easier to measure than powder. Do you find this useful?”
Understanding what your business truly competes on is crucial for any salesperson. Businesses often position themselves based on various strengths: superior products, exceptional customer service, innovative solutions, or seamless processes. Yet, if salespeople default to competing on price, they undermine these strengths and diminish the overall value proposition of the business. The disconnect between what the business believes it is competing on and what the sales team communicates can be detrimental.
Read: Sell effortlessly: navigate from bloody sales waters to blue oceans
Navigating Economic Constraints: Competitive sales strategies in business-case study
I’m not blind to practical situations where price is genuinely a limiting problem. The current state of the economy is such an example where a business may rethink its pricing strategy because customers are particularly price sensitive. Sometimes though the business may rethink, say, the product or any other of the remaining five Ps (place, promotion, people, physical evidence and processes). Do you remember, a loaf of bread used to be 500g and instead of reducing price manufacturers reduced the quantity to 400g? This subtle shift in strategy highlights how businesses can adapt without directly slashing prices. Now, if the sales person is unable to articulate, or is unaware of what the business is competing on, he is likely to start the pitch with, “You know the quantity of bread is now less….”
This approach misses the opportunity to emphasize the (possible) product’s enhanced value. A well-informed salesperson would pivot the conversation to highlight the improved attributes: “While it’s true that our bread is now 400g, we’ve also enhanced the recipe to make it more nutritious and longer-lasting than before. Let me tell you how our new formulation provides better health benefits and stays fresh longer, giving you more value for your money.”
Read: Are your employees sabotaging your sales? Here’s what to do
Emphasizing Unique Selling Points for competitive selling strategies in business
Salespeople often encounter situations where customers compare prices. Dealing with competition in business, requires effectively communicating your unique selling points. Understanding the real competitive advantage allows salespeople to shift the focus away from price. Instead, they can highlight the overall value and benefits of their products. This approach not only addresses customer concerns but also aligns with the business owner’s vision of competing on, say, quality, innovation, and exceptional service.
Ultimately, the key to successful selling lies in understanding and articulating the business’s unique value proposition. By doing so, salespeople can transcend price competition and foster a deeper connection with customers, leading to sustained business success and growth.
Read: Why you and not the competition? To win address both in your pitch
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