I was reading the July/August issue of Selling Power when I came across the article, Well Worth the Price. The article discussed why customers focus on price and what salespeople can do to shift their focus.
Of course, my brain immediately went to validation for educational marketing content. Here are some of the reasons the article gives for price focus:
- Customers aren't aware of the true cost and scope of the problems they're solving.
- Decision makers have too much information and not enough time to understand it.
- Focusing on price is easier than examining cost structures that distract them from their business.
- Large companies move buying decisions to purchasing - who's under mandate to get the lowest price.
The gist here is that going after a reduction in price is the easiest option for the buyer to focus on. Price is understood. With the commodity status of many products, differentiating by price seems the easiest way to choose when the belief is that all the products they can choose to buy enable the same outcomes.
And therein lies the rub. Even though many products look alike, the outcomes that buyers can gain from them can be wholly different based on their unique circumstances and the expertise of the company providing the product.
What a grand opportunity for educational content development.
Educational content that explains the differences in the way the product is applied to the problem can point out underlying (and often unrecognized) costs and consequences companies can incur by only focusing on price. Dispelling these misconceptions can go a long way toward making the price issue less relevant.
Pointing out additional value that your expertise delivers beyond just the product features can also make your price seem like a bargain. If you can get to the root of the prospect's problem you've gained additional insight to how you can address their pricing concerns from a value perspective.
For example: If they only equate the cost of your solution against solving the predominately obvious problem, but not the underlying root cause, your price can take a beating.
The point of the article is to get your customer to focus on all the economic costs they're not seeing. The result is less focus on pricing because the value they're purchasing with those dollars has escalated. This means you need to shine a light on your expertise and the successes your customers have achieved. Look beyond the obvious.
By getting out in front of this issue with educational content that helps your prospects understand the issues, side-effects, underlying costs and value of your expertise, your sales cycles will shorten and your reps will have less obstacles to overcome when they get face-to-face with the buyer.
When you're company is the first to help them simplify and understand the true issues they're dealing with, you can become the "anchor" on that subject, setting a really high bar your competitors must surpass. And that's exactly where you want to be - considered the ultimate measuring stick against which all others must measure up.
Ardath, your blog posts on B2B Website design have been extremely helpful. I'm currently working on the Website for my business that targets B2B buyers. This morning's post is spot on. Thank you.
Mary Kay O'Connor
Posted by: Mary Kay O'Connor | August 11, 2009 at 07:43 AM