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VALUE OF YOUR OFFER
MUST EXCEED
THE VALUE OF THEIR MONEY
by Grant Cardone
Because so many people wrote in regarding last weeks strategy asking questions I want to go over some basic rules when it comes to building value.
The rule is that your buyer will ONLY spend their money as long as the perceived value of your product or service is greater than the value of their money. In order for retailers, individuals, sales people, fundraisers and companies to succeed in this economy you must spend more time building the value of your offer so that the value of your product/service exceeds the value of their money. In this economy you are going to hear ‘budget’ every time you present a price. Do not buy into this objection as the reason not to buy, know that your problem is not price, your problem is always value!
Clearly the trouble, uncertainty and fear in the market will cause your customer to be more frugal, more careful and more selective. Anyone looking for or considering your product today is a buyer! Despite the bad news people still love to spend money and will justify doing so ONLY when value exceeds price. Spending is instilled deeply into the psyche of the American and it will take more than a recession to stop the propensity to purchase and expand. Companies will still need to make investments in order to expand but they too will be more selective and their funding will flow to where the most value is perceived.
While spending will be reduced it will not be eliminated and those that prove successful will focus on value not price. If you are selling a $30 book do not do a $30 presentation, as it will not get the job done. You must build value in excess of the price of the book! You may need to show that the book is worth $3000 and in addition to that assure to your prospect that it is also easy to read, the information easy to use and that this is a book that your buyer will use over the years to solve problems and make money. Also take the time to reinforce and ensure the use of the product as many people refrain from a purchase because of past wasteful decisions.
Do not confuse value with lower price as they have nothing to do with one another. Lower price will not get the job done in this market, only the value justification proposition will! When people tell you that don’t have the money it is NOT true. The saving rates in this country has now reached the highest levels in 25 years. Know that anytime you have a price objection you really have an objection to value! The consumer today has more money than a year ago but is being more selective! While the consumer is motivated to conserve money know that the desire to spend money runs deep in our culture.
Tips on Building Value
1) Know that value is the issue, not the price.
2) Build value don’t discount price.
3) Value of your offer must exceed the value of money.
4) Ensure successful use of the product as part of presentation.
5) Build value ten times the price of your offer.
6) Always use full inventory as a way to further build value.
Grant Cardone
Sales Training Expert and Author
Call us at 800-368-5771
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