The Surprising Fact About When Your Price Is Set

26 March 2012
991 Views
Comments are off for this post

Chess

As your company grows in Stage 2, you should use your sales process to drive more value – yes, for your company…but also for your customers.  The only sustainable growth comes from win-win sales, so your sales process will benefit you and your customers.

One of the most important ways that your sales process can increase the value you bring to and get from your customers is by uncovering what the real need is.  Oftentimes, customers don’t know what they don’t know, and by managing the sales process well, you can help them realize what they really need.  In doing that, you also make sure that you’re paid for any premium value that you give them.

Price is a function of value, and the surprising fact that you need to know is that value is established when the need is defined, not when the solution is defined.  If a customer comes to you and tells you what they need, then they have already set the price in their mind.  On the other hand, if a customer comes to you and asks you to help define what they need, then you create the value together.

If you’re like most Second Stage companies, it’s hit or miss whether you’re talking to customers about the answer or the problem.  It takes a clearly-defined market strategy, and a disciplined sales process, to ensure your conversations consistently focus on the need.  That takes some work, but it’s also the best way to grow your small business in Stage 2.

I’ll be talking more about this on my Stage 2 Secrets call this month – click here to register.