What is the real value of what you sell?
Jeffrey J Fox is a master of Dollarising the real value of what you sell.
Jeffrey says that we have to understand that customers never buy products or services.
They do not buy features or benefits. They do not buy technology.
What customers buy is what they get from a product or service.
Customers buy outcomes.
Jeffrey explained that great companies price their products and services to the value the customer gets.
This marketing and sales strategy is called ‘dollarization’.
People buy for one of two reasons:
To feel good or to solve a problem.
“Feel good” is measured in intangible values, such as the stylish fit of a sweater, the taste of fine wine, or the tight cornering of a new sports car.
The solution to a problem represents either the avoidance of loss (e.g., reduced costs) or the chance for gain (e.g., improved sales).
Both the avoidance of loss and the chance for gain can be measured in dollars and cents, or “dollarized”.
People buy value, an economic return.
So smart businesses don’t sell products or services, they sell money. Dollarization calculates how much money.
Here are some of the things it’s helpful to find out when you interview a potential client to find the value of what you are offering them.
• What’s it costing them today for a problem they have?
• What is the value to them if you can help them solve this problem?
• What’s the potential upside?
• What can you help them with?
• What costs can you help them eliminate or cut?
• What revenue gross margin revenues can you help them gain?
• What potential negative problem (and the associated cost can you help them avoid?
You find out how your product service can reduce cost, increase gross margins, or avoid preventable future events and the cost associated with it.
It’s all about really asking the customer thoughtful pre-planned questions till you get to the point of whats it costing the customer or what is the opportunity cost
for not doing something.
This makes the ‘real value’ of what you sell a lot clearer to your clients.
Today’s quote: “Price is what you pay. Value is what you get” – Warren Buffett