Moving from transactional to value-add, isn't all that impressive, but it is a start. Also, for some business models, transactional selling is perfect - think paperclips, pencils and lightbulbs.
"Value Add" is not that much more evolved than "Transactional. In the beginning, "value-add" referred to adding services for 'free'. The theory at the time was that the gross profit in each equipment sale was healthy enough to support the costs involved with adding value.
It starts with you, three things:
Try to forget about price, just for a second
This is difficult, but disconnecting from the price is your first move.
Don't tell your prospect you want to be more of a value add, trusted advisor, partner.
They've heard it all before, show through action.
Consider moving to a different level of contact
Another challenging aspect, if you've been speaking with a decision maker whose only criteria is price and delivery (the first column), shifting to a different influencer is risky - but necessary.
If you'd like to learn how to move around the spectrum, email me at greg@grwalters.com.
Reflect upon your movement along the spectrum while enjoying some old-skool, sweet jams from Blackstreet, "No Diggity".
"We've made too many compromises already; too many retreats.
They invade our space and we fall back. They assimilate entire worlds and we fall back. Not again. The line must be drawn here! This far, no further!"
Captain Picard's, "White Whale" speech refers to a relentless invading force moving forward, overtaking more and more. Equipment quotas are like this - they never decrease, they are automatic, ubiquitous, and numerically exponential.
This was the way of the past - mass production distributed costs across a huge number of like identical products supported through mass marketing -
"you can order any color you like, as long as it's black..." Hank Ford.
The machine quota-driven, customer service experience is being recognized as an oxymoron by the very people you're trying to sell: the prospect.
The End of Device quotas are Near
Product will be ordered custom 1:1- the end of commodity devices
Production costs will approach zero - 3D manufacturing
Time to market will be measured in hours
All equipment-based transactions will be direct - a myriad strong channel consisting of, specialized providers will service on an ad-hoc basis.
You can start now. The biggest battle goes on between your ears and in your heart. If you search yourself, you know real customer service has nothing to do with your 30 equipment forecast.
"When you sell hammers, everybody is a nail."
The day is coming, some owners have already crossed the Rubicon, refusing to play the OEM quota game. Some manufacturers no longer enforce equipment quotas and more will follow or get left on the wrong side of history.
Our niche will be transformed forever; your customer's world is changing too. Do you have the eyes to see, or are you a modern-day Ahab?
It is the first week of the year and you're going to hear a lot about business plans, forecasts, funnel management, and quotas. Thousands of time-saving, productivity enhancing, sales coaching, articles flow through the digital rivers of the internet - nauseating in its volume.
I ask you, how are you, personally, forging ahead in the new year? Will you be part of another's plan or will you set the agenda?
My advice is simple - nod your head to whatever your manager says, tuck the dogma away, get alone and do the following five things:
1. Download and print the chart below
The chart was developed to illuminate intent between clients and vendors. It works on a personal basis as well.
2. Find your personal position on the chart
Trust yourself enough to be completely honest. There is NO WRONG position. Think about the past year; did you add value beyond delivery and price?
3. Find your employer's position
Step back and consider your organization's sales over the past 12 months. Did you see lots of devices delivered yet a handful of software implementations? Are your equipment quota's higher than services? Do you lead with the latest and greatest or solve real business problems? Do you often hear your manager say, "That price is not competitive, bury the profit in the service, bundle installation into the lease..."?
4. Where do your best client implementations fall on the chart?
Now consider your client base. Did you sell machines or provide answers? Were most of your deals price-driven? Did they begin and end with a purchasing agent?
5. Look at the gaps and imagine moving into a more desirable position in 2015. What will it take?
Although there is no wrong position, if for example, your prospect is looking for a 'Specialized' relationship and your company only provides 'Transactional' services, your relationship is not sustainable.
By the same token, if your personal position is in 'Specialized' but your employer falls comfortably in the 'Transactional' column, you may have some issues to work out.
If your clients are all in 'Transactional' yet you want to get to the 'Specialized' area, what can you do to elevate the conversation?
This is a simple beginning to personal success - we can get deep on both the provider and client-side of the spectrum. The devil is in how your customers perceive your offering relevant to how they think of themselves; do you two match?
I'd love to discuss with you how to best use this tool. It's been effective for providers and end-users alike.
For now, hang your chart in your cube, office, or dashboard. Embed it into your pre-call planning or (god forbid) your pitchbook - heck, make it your wallpaper.
But make sure to take a pic and email it to me. The most interesting one will get a Starbucks card on me.
Cheers!
Reach out to me: greg@grwalters.com and enjoy this sweet jam:
