Value Propositionprice ≠ value

Dr Bryan Mills BEIT

Benefit

EmotionPrice

Price Emotion

Benefit

• People are most receptive if the information that is offered matches their needs:

• either conscious needs or the latent desires generated by their immediate surroundings. Even now the most valuable content is user generated: “Honey, I’ll be home late tonight”

• Rogers’ Innovation ACCORD model:

–Relative Advantage to what it replaces

–Compatibility with current behaviors

–Complexity of communicating the benefits

–Observability of the products benefits

–Risk of product failure

–Divisibility or trialability

innovators, early adopters, early majority, late majority, and laggards

Understanding the Value Proposition

– What benefits are they willing to pay for?

– Functional attributes defining “quality”

– Added benefits or services beyond product

– Economic benefits

– Psychological benefits

Seven!• Consumers rate these issues as “important”

Quality of the product

Brand recognition

Follow-up support (trouble-free ownership)

Reputation of the product and the company that makes it

Terms

Delivery and installation: dependable

Price

Seven Steps of Successful Selling

Prospecting and Getting CustomersBuild Rapport and TrustIdentifying Customer NeedsPresenting SolutionsAnswering ObjectionsGet A CommitmentFollow Through/Follow Up

“Old” Model of Selling

10%Establishing

Rapport

20%Qualifying

30%“Selling” (Presenting)

40%Closing

“New” Model of Selling

40%Developing Trust and Rapport

30%Defining Needs &

Problems20%

Describing Features & Benefits

10%Closing

Types of Questions

Closed End Question“May I help you?”

Open End Question

“What are you looking for today?”

High Value Question

“What are the three things you like least about…?”

Need Payoff Question“Would it be useful to you to cut the amount of time you..?”

“Master your instrument, master the music, and then forget all that crap and just play” Charlie Parker