Mutual Negotiation Success for Information Professionals and Salespeople
Jinfo Blog

By Michael Gruenberg

Abstract

The process of purchasing information products and services can be a complex one. Michael Gruenberg, author of the book "Buying and Selling Information", illustrates how information professionals and the vendors who supply them can move towards a more successful sales and ongoing customer relationship.

Item

The Value of a Product Is More Important Than its Price

If a sales rep is unsuccessful in selling a product, it's because he or she did not adequately demonstrate the value that the product could possibly have for the customer.

When the issue of price comes into the picture, the sales rep must show that the value of the product is more important than the price.

Giving the Customer a Reason to Buy - Getting Past "No"

When a customer tells a sales rep that the price of a product is too high, what they really are saying is "show me the value".

Once the sales rep demonstrates how the product benefits the customer or organisation, then price becomes a non-issue.

Conversely, the customer must articulate to management the value expected from the product described by the sales rep.

The Price of a Product Should Not Be Out of Sync With Your Competition

Information professionals look at some very basic attributes of a product when making a buying decision, the most important aspect being product quality and the value it brings to the library.
 
There are fewer and fewer companies vying for the same customer with the same product, and it is rare that one company would offer its product at a higher or lower price than the competition.
 
With a sophisticated network of competitive intelligence, most companies know what its competitors' prices are. Therefore, no sale should be lost based on price.

Establishing a Good Working Relationship With the Customer is Essential

A savvy sales rep will understand that price is not the ultimate consideration when a customer is deciding what to buy and from whom.

The company that has superior service, knowledgeable salespeople, quality products, and that can create a strong bond with the customer will always win over its competitors.

From an info pro's perspective, it makes more sense to deal with a company that not only provides products with value but also listens to the info pro's opinions and makes changes to product offerings based on customer feedback.

Understanding the Difference Between Features and Benefits

It is extremely important for the salesperson to establish the difference between the product's features and its benefits to the customer.

A feature describes something the product does, while a benefit tells the customer what it can do for them.

Customers do not make purchasing decisions based on the features of a product; they make purchasing decisions on how the product is beneficial to them or their organisation.

The 80/20 Rule: How the "Vital Few" Can Mean Success or Failure in Closing the Sale

Salespeople are led to believe that 80% of their business comes from 20% of the highest revenue-generating customers, while 80% of what a company produces is done equally as well as its competitors.

It's the extra 20% of effort and unique content that differentiates a company from others selling similar products in the information industry.

Though the unique 20% may not seem to be important, it can mean the difference between securing or losing a big sale, or maintaining a relationship with the customer or not.

Editor's Note

FreePint Subscribers can log in to read and share more in Michael Gruenberg's article The Importance of Value. 

To get your copy of Buying and Selling Information, visit the Information Today, Inc. bookstore. FreePint subscribers can save an additional 25% off the web order price when you enter the promo code FREEPINT at checkout. The promotion runs from 19 March 2014 until 19 April 2014.

« Blog