Thoughtful Thursdays – Benefits versus costs: Are you considering all the costs?
A part every worthwhile sales training workshop I have attended includes discussion about communicating the benefits that your product or service will bring to the customer. Today’s thought is about the cost side of that exercise. Are you taking into consideration all the costs?
Beyond the cost of your product or service, are you factoring in the costs to your prospect such as:
- Setting up a new stock keeping unit (SKU)
- Setting up a new suppler
- Costs of plant trials
- Costs of potential inherent risks of making changes to formulations
- Emotional costs of change
Perhaps one of the biggest potential costs is the emotional cost of making a change. It is very important to understand the reasons that are driving the desire to make a change. It is often more than just the price of the product or service. A lower cost can certainly get the ball rolling, but in may experience if this is the only driver, the incumbent supplier will most certainly get the opportunity to counter offer and all that happens is that market pricing erodes and that is a one way street to decreased profitability.
Be mindful of all the costs and understand the costs that are often difficult to quantify. Emotional costs are often the barrier to making the sale and understanding what they are can often make the difference.
Good selling,
Richard
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