Peak Performance Training & Development Sales Tip Products and Services Don’t Commoditize Themselves, Sales People Do!
Greetings:
Why do so many sales people jump through hoops to get the prospect’s attention then deliver a stellar presentation, only to have the prospect go with a competitor who comes in at a lower price? Are your products/services overpriced? Are your competition’s offerings underpriced? Why does the prospect perceive your product as a mere commodity—easily replaceable by any number of competitive products? Has the prospect become a smarter and better negotiator, or do they simply hear the same needs-focused pitch from you and everyone else, that ultimately demotes your superior solution to commodity status?
Why You? Why you? This is the question most prospects ask themselves when dealing with a sales person for the first time. Why should I buy from you? Most sales people respond with the obvious and expected answers:
We have the best product
We have the best services
We have the best price (having the best price and the best product is often a contradiction in terms)
We have been in business for years
So how come you didn’t get picked? Because your competition is probably giving the same canned responses! Therefore these responses actually commoditize you instead of clearly differentiating you from the pack. How you respond in any selling situation will either clearly differentiate your product or service in the mind of the prospect or clearly commoditize your product or service causing severe consequences.
Sales Management Seminar: Converting the Complacent Sales Team-How to spot the Top Producer
Do your prospects have a system of deferring your sales people that is more powerful than your system of selling?
- 98% of sales people do not follow a consistent sales process
- 95% of customers say sales people talk too much
- 93% of sales people volunteer a price decrease without being asked
- 87% of prospect inquiries are never followed up by a sales contact.
- 82% of sales people cannot differentiate themselves from competitors
Why? Discover how Hidden Weaknesses sabotage sales-peoples' ability to deal with objections. Discover why most sales people have so much in the pipeline, yet fail to close deals.
Remember you have been taught to identify a “need”, followed by “pitching” your features and benefits. So when you begin the process of identifying a need, keep in mind that your competition will do the same thing! When you begin to spin your features and benefits remember your competition will also spin to suit identified needs! You know your prospect has begun the comparison and analysis phase when they ask you for more information or a proposal. Most sales people will respond to this request with a proposal (just like the competition). Do you see how you have begun the process of being seen as a commodity?
If you fail to clearly differentiate yourself and end up commoditizing your product or service the following negative ramifications come to the surface.
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Three Critical Repercussions for the Sales Person
Extended selling cycles/Increased time investment: When prospects see you as a commodity inevitably they will “want to think about it” extending the selling cycle and increasing the time and energy you must invest per prospect. The more time you invest into the prospect, the stronger the prospect’s position becomes. Bear in mind, when a prospect tells you he wants to think about it, what he’s really saying is “I want time to compare”!
Commoditization: When your prospect enters into the comparison and analysis phase, more often than not there are actually more similarities than differences when compared to the products or services of your competition. Therefore if YOU fail to differentiate yourself, your product or service, then it is YOU who has commoditized your product or service.
Price becomes a major factor: When your prospect sees more similarities than differences, inevitably the price becomes the differentiating factor. This can be devastating in any industry, however it is particularly damaging in a negative economy.
The so-called sales superstar often makes their biggest sale (and sometimes, only sale), when selling himself/herself into the sales position you have available.
More often than not your expectation levels are high yet six months later their productivity levels are low. What happened?
Stop selling towards your prospect's needs. Start uncovering why they need it! Start to uncover what they “need” to avoid post decision. In situations where an incumbent is in play realize they don’t “need” you or your product. What they need is the difference between where they are (current level of service, quality or communication) and where they would like to be. Uncovering this “gap” is crucial to selling on value and de-commoditizing your products and services.
The so-called sales superstar often makes their biggest sale (and sometimes, only sale), when selling himself/herself into the sales position you have available. 
The Solution: 
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