Posted by: wingnut650 | June 22, 2008

Talking value and the dangers of not doing so…

I read a really great posting on Seth Godin’s blog from yesterday entitled “No such thing as price pressure” where he argues that pricing should be indicative of the value that your product or service brings to a market and really sums it up nicely in this quote “You’re not selling a commodity unless you want to”.  Fantastic and simple.
Now, the challenge as a marketer (at least my challenge as a marketer within a sales organization) is to get the reps to talk value and not buckle to immediately talking about price.  Being able to have discussions on value are what really separates good reps from marginal ones – but as one of those individuals (me) responsible for training reps on that very skill – it’s much more difficult than you might think.  When talking about product (I work for a software company) with reps, I will talk about value as much as possible and not bring up pricing – and these conversations invariably center around a competitive situation that the reps find themselves in.  Many, many times, these situations degenerate into price wars for the reps and the product essentially becomes a commodity in the eyes of the prospect and even if the deal is won, there’s a lost opportunity there.  We’ve lost the opportunity to create a customer evangelist by not firmly establish the value they will get from a product standpoint and from an organizational standpoint – and it’s there…and ‘commoditizing’ the organization certainly isn’t good for business.

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