Phillip Gutsell, President and owner of GutSELL & Associates spoke during High Point Market about How to Sell Value Instead of Price.
High Point Market Authority’s description of the seminar: “Most salespeople end up selling price instead of value (especially the average to below average performers). If they understood the sales formula that connects with customers, they would close more often and with larger average tickets. The net results will lead to more volume, more margin, and most importantly, long term customer relationships.
Taylor Rechtin, one of our High Point Bloggers, attended the seminar and came away with these key notes:
- Most retail advertising is price driven
- Mailing list available to sign up and receive a technique of the week
- 80% of advertising focuses on price
- The price-value relationship is not generally understood
- This sales technique is modeled to help overcome the “I have to think about it customer”
- Phillip Gutsell created a mathematical equation for sales
- It takes 6 to 15 B=V if V>P=T
- B stands for benefits
- V stands for value
- P stands for price
- T stands for transaction
- Most salespeople try to close verbally, yet research shows the nearly 25% are verbal, 35% are visual, and 40% are kinesthetic
- When a customer says “I have to think about it,” instead of saying “ok,” say “oh.”
- Then do a verbal review: “What is it you have to think about?”
- Then say, “This is an important decision isn’t it? May I show you a method that has helped many of my customers make up their mind?”
- Take out a piece of paper and draw a t-chart with benefits on the left-hand column and concerns on the right
- There is where the original equation of 6 to 15 benefits comes into play
- These can include comfort, style, durability (don’t use quality), wearability, etc.
- Then to close the deal ask “Is there any reason for not going ahead?”
- If the customer still says no, 75% of the time it is because of price
- If they try and negotiate and their offer and the ticket price are more than 40% different, we are on the wrong product
- Never say thank you; always congratulate the client on their purchase
GutSells & Associates “helps companies increase sales and maximize profits by providing customized consulting, training and coaching services for the home furnishing, appliances and electronic retailers.”
Thank you High Point Market Authority for bringing this interesting topic to the market community.