Thoughtful Thursdays – Quantify the benefits
We are trained to talk about value to our customers. The value of dealing with our company, the value of our products and services, and the value of the business relationship to name a few value points.
Today’s Thoughtful Thursdays sales topic is about quantifying the value.
While it is good to speak about value, your message becomes so much more compelling if the words are converted to dollars and cents.
Perhaps your products and services provide value in one or more of the following ways:
- Reduces down time
- Do not have to use as much
- Faster processing
- Saves space
- Local inventory
- Easier to use
Each of the above benefits can be quantified.
- The hours of reduced down time multiplied by the hourly cost of operations will provide savings. If you are not sure of your customers hourly cost of operations, estimate it. They will tell you if you are high or low. The point is that the savings now have a dollar value.
- If your customer does not have to use as much of your product or service, multiply the cost of product by the difference in volume used.
- Faster processing means less time taken. Take the time saved and multiply it by the cost of operations to come with a dollar figure. You can also quantify this value as increased output due to faster processing.
- Saving space also save money. Estimate the space saved and multiply if by the cost of that space. It may be calculated as dollars per square foot savings.
- Local inventory can save your customer money in warehouse space as well as transportation fees.
- Easier to use may translate to time savings for your customers employees, resulting in productivity gains, which are also measurable.
Facilitating the buying process by converting your benefits to dollars and cents may just result in closing the sale one day earlier.
Good selling,
Richard
Have a question about sales? Contact Sakanashi and Associates Inc. and I will respond.
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