Commodity Sales; Products Don’t Commoditize
... Sales People DO!
Why do so many sales people jump through hoops to get the prospect’s attention then deliver a stellar presentation, only to have the prospect go with a competitor who comes in at a lower price?
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Are your products/services overpriced? Are your competition’s offerings under priced? Why does the prospect perceive your product as a mere commodity—easily replaceable by any number of competitive products? Has the prospect become a smarter and better negotiator, or do they simply hear the same needs-focused pitch from you and everyone else, that ultimately demotes your superior solution to commodity status?
Why You? This is the question most prospects ask themselves when dealing with a sales person for the first time. Why should I buy from you?
Most sales people respond with the obvious and expected answers:
- We have the best product
- We have the best services
- We have the best price (having the best price and the best product is often a contradiction in terms)
- We have been in business for years
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So how come you were not selected? Because your competition is probably giving the same canned responses! Therefore these responses actually commoditize you instead of clearly differentiating you from the pack. How you respond in any selling situation will either clearly differentiate your product or service in the mind of the prospect or clearly commoditize your product or service causing severe consequences. How much business you lose or how your bottom line is impacted based on price reductions is up to you.