Value is one of the most talked about topics in the sales industry. While at the same time, it is one of the least understood topics in sales.
Every manager and trainer (including myself) has said to every salesperson, including you, to build value. However, what does that actually mean. The Merriam-Webster dictionary defines the word value as:
A fair return or equivalent in goods, services, or money for something exchanged
In the terms of a sale, value is what causes the customer to decide how much of their money they are willing to part with. Unfortunately, most salespeople do not understand this concept and they believe a customer will only part with their money when it the “Best Price.”
In reality, if you believe in your value proposition to your customer, they will as well and when the customer believes in your value proposition, they will be willing to part with more of their money for your product and your services. Let’s look at the six components of a value proposition.
6 Components of a Value Proposition
- The value your dealership provides – This is an opportunity for you to talk about your dealership in terms of what they stand for, how they have helped others, and unique value propositions they offer. This is your chance to talk about capability and loyalty.
- The value your product provides – The best way to present your vehicle is through painting the mental picture of the satisfaction of ownership. Telling your customer, the story of how your product will provide them with the desired outcome they are looking for. Getting your customer to embrace the idea of no longer having their current problems.
- The value you provide – You must understand that the first sale in any transaction that is made, is you. You must also understand the critical role this piece of your value proposition is. IF YOU BRING NO VALUE TO THE TABLE THEN PRICE WILL DOMINATE YOUR TRANSACTIONS AND OUTCOMES! Your value begins with things such as: your desire to serve, operate in the customers best interests, product knowledge, industry knowledge, and most of all your overall understanding of how your vehicle is going to provide the customer with their desired outcome and solve all their current problems. You must go beyond salesperson and be consultant. You must become a business friend, the authority in your field, the customer’s go to person for all things automotive related. Become a TRUSTED ADVISOR!
- The value of short-term incentives to purchase now – EVERYONE wants a ‘deal’ when they purchase something, and car buyers are no different. You must learn how to turn the available short-term incentives into the urgency to do business NOW! The lack of creating a ‘feel good deal’ and without any sense of urgency will leave your customers wondering why they should buy now, and if they are not certain why they should buy now, then they won’t! Your why buy now is a must for any value proposition.
- The value of solving the customers current problem – This is one of the most overlooked concepts in sales. Your customer has a problem that they are looking to solve, otherwise they would not be there. An unspoken part of any value proposition you MUST investigate into the problem the customer needs solved. You MUST have strong understanding of your customer’s desired outcome and how your vehicle provides this. If your vehicle does not solve their current problems, nor create the desired outcome the customer is looking for the value of your vehicle will not matter, they won’t buy!
- The continued value after the sale – The first sale should be only the beginning of the value you that you provide. If you become the ‘Trusted Advisor’ and continue to provide value after the sale you will be on your way directly to Repeat and Referral Town. One major problem in the automotive sales industry is that as soon as the vehicle rolls over the curb, most salespeople forget about their customers, giving the customer no reason to send referrals and no reason to purchase from that salesperson again. Focusing on value after the sale will be good for the customer and for you!
Convert your “sales pitch” into your value proposition will differentiate you from every other boring salesperson out there. Not only will this help you earn the sale, but it will also help you earn the sales for a higher price and a higher commission, as well as keep the sales coming through referrals and repeat business. Sounds like a good value to me!