The Value Equation...

One of my favourite fairytales is Jack and the Beanstalk. As the story goes, when the family cow stopped producing milk, Jack’s mum told him to take it to the market and sell it for as much as possible. When Jack came back from the market he was, ecstatic. In his mind he had got the deal of a century. He traded one maungy old cow for a bag of magic beans.

Jack’s mum on the other hand was furious. In her mind, Jack had given away their loyal family cow for a maungy bag of beans. This is how the equation looked from Jack and Jack’s mum’s perspective:
 

Jack
Maungy Cow < Magic Bag of Beans

Jack’s mum
Loyal Cow > Maungy Bag of Beans 
 

In every sales situation, buyers are consciously or unconsciously doing an equation, weighing up what they get versus what they give. If customers perceive they get more than they give, they’ll buy every time. Sales peoplethat educate their customers about the value the customer will receive from their solution, can tip the equation in their favour.

Selling on value is all about turning an ordinary bag of beans into a bag of magic beans. It’s not about lying, just educating the customer about the magic that’s already there. It's about turning this equation....


Your Solution = Everyone Else's
or
Your Solution = Massive Cost

into this equation...

Your Solution > Everyone Else's
or
Your Solution = Massive Value

 


I’m interested in your thoughts. How can you stack the value equation in your favour?

Onwards and upwards!

Mark