The Downward Spiral To Commoditization

We’re fans of Jeff Thull here at The Hire Sense and his latest article on the Salesopedia.com only supports our belief.  Anyone who has been in sales longer than a day has seen a sea change in the customer relationship over the past couple of years.  Rapid commoditization is a huge problem even for “unique” solutions. Here is the crux of what is happening (emphasis mine): Seeking competitive differentiation through increasing uniqueness and complexity can be a deadly double-edged sword, especially if building that differentiation exceeds the needs and understanding of your customers.  You and your competition may believe you have a high-value product or service, but if your customers… Read More

Continue Reading

Price Perception

I have seen the price issue play out among many salespeople and there seems to be one simple, philosophical difference between those who close high margins deals and those who are serial discounters.  The key difference is understanding that pricing is based off what the buyer will pay for the product or service, not what the cost is to produce it. I’ve seen this difference first-hand as one salesperson prices his product at a fairly high margin.  However, the product is highly engineered and relatively unique in the market.  One last helper – the company has a strong reputation in the market which certainly helps…greatly. The other salesperson for the… Read More

Continue Reading

The Absence Of Value

We’ve been working on this value topic because it is the single, most important aspect of any sales position.  A company that lacks a value proposition is destined to stumble through the market while being commoditized on price. I saw this effect 6 years ago when doing sales calls in the field with a company’s reps.  After spending a couple days in a couple different cities, it became clear that they had to value proposition to offer the market.  This absence of value led to one consistent outcome – they had to compete on price.  Granted, some companies are positioned to compete in this format.  The company I was working… Read More

Continue Reading

Value Proposition-You Don’t Have To Be Different

MarketingProfs.com has a superb, thought-provoking article regarding value propositions.  If you have read The Hire Sense of late, you know this is a topic we are exploring in many facets of sales.  I have to confess, this author’s take is completely different (irony there) than the other points I have read on this topic. Here is the gist of his commentary: So be different: Stop listening to the continuous pleas from consultants, marketers, and textbooks to be different… one of a kind.. .a shining beacon of newness in a sea of same-old same-old. Focus instead on actually delivering the value to the market that you say you deliver (which, in… Read More

Continue Reading

One Source Value Proposition

I have been noticing a common value proposition from distribution companies – “your one-stop shop for all things _________.”  Some of the sales reps for these companies use this value proposition as their main lever.  I tell them this is a mistake. Here’s why – the web changes everything about sourcing.  I don’t need to limit myself to one vendor for all my _______ needs.  In fact, I have a subtle doubt about that approach – am I getting the best deal, product or solution if I go with one company exclusively?  The “catalogue mentality” is fading from our society and being replaced with a research mentality. The proverbial old… Read More

Continue Reading

Selling-You Can Always Get Better

ManageSmarter.com offers this article – If You Want to Improve, Train Your Brain – regarding the need for salespeople to have a broader skill set in today’s market.  That is a trend we have seen over the past few years and one that is sure to expand. Ok, I know sports analogies can get tiresome, but I did appreciate the “subtitle” of this one (emphasis mine): “Selling is like golf: You will never be perfect but you can always get better,” Johnston explains. “Even the pros lose their swing at times, and it is good to get coaching when that happens.” You can always get better at selling – how… Read More

Continue Reading