Jun 16 2011

Signtronix VP of Sales, Bill Henry asks: Are you walking the ‘baseline’?

Published by at 11:14 am under Signtronix

Selling Above Base Price

Bill Henry, Vice-President, Sales

The difference between selling at “base price” and “above base price” or with “overage” simply has to do with perceived value. It has to do with the perceived value to the person doing the buying and the person doing the selling.

When a prospect buys a sign he is buying it for the value it has for him. Different prospects will perceive the value differently – -and pay different amounts — for the exact same product.

So how do you determine the value (selling price) our product has for a particular prospect?

By constantly monitoring their responses to us. Pay attention to their reaction when you pull the cover off the sample. (Are you excited?)

Are they nodding their head in agreement as you go through the presentation? (Are you nodding to get them to agree?)

Do they react enthusiastically when you show them the testimonial letters? (Are you enthusiastic?)

Are they envisioning what our product can do for their business? (Are you suggesting what it could do for them?)

The selling price of our products is in direct relation to the amount of value building you do during your presentation.

Value and urgency are created throughout your entire presentation. Urgency can not be created at the close by the dealer. Urgency is what the prospect feels, because he can’t wait to get his sign(s).

Most importantly, does the Return on Investment make sense to your prospect? (Does it make sense to you? Is it realistic?)

The Main Street America Showcase Program, whether you use the TAP Program or close on your own, is designed to give your prospect the incentive to make a decision today. If value and urgency are not created in the presentation, your prospect will not act on your proposal, regardless of the incentive. You must constantly build value, create urgency, and always be closing throughout your entire presentation.

In the close we do a cost comparison. We show what a custom sign shop would have to charge for a comparable product and why. We show the business owner that even if he paid a custom sign shop price it would be a good investment, based on the Return On Investment.

The ROI must be based on what the prospect believes, not just what you tell him. He must take ownership of the sign and what it will do for his business. The ROI must be high enough that the prospect wants it, but not so high as to be unbelievable. The ROI must be realistic.

We then show the business owner our Retail Price. We show the prospect why we don’t have to charge as much as a custom sign shop. Our mass production techniques and buying power allow us to offer a much lower retail price.

The factors in determining your selling price (either base price or with overage) is the prospect’s response to your value building statements and your ROI. Remember, everything is bought based on perceived value. If the ROI makes sense to your prospect, he will pay your asking price.

If your cost comparison and ROI make sense to the business owner, he will act on your proposal if he has the incentive.

The incentive for the prospect to act today is our Main Street Showcase Program. We will pick up a large part of the cost, if he helps us by doing a few things and if they can act on it today. Your prospect must fully understand our reasons for the discount. Explain each condition of the MSA program and your prospect will act on it TODAY.

No responses yet

Trackback URI | Comments RSS

Leave a Reply