Black Sales Journal

As a sales professional you sell what you are given to sell.  When the company that you are representing is selling a commodity, or something near to a commodity, you have to put forth some extra effort to land the business.

While there are a lot of products out there that “sell themselves”, you may have a product that is as inauspicious as salt.  I am going to talk a little about some ways to get the “edge” in the sales process.

Salt Might be Just Salt, but ‘You’ are Different!

The majority of products do have features that provide benefits that others do not necessarily have.  Commodity products are literally indistinguishable from their peer products.  Know how different your product is, if the customer views your products as “the same” as your competitors, the customer’s perception is the new reality.  Here is some good information that you can use to help

• The Package – The package is anything you and your company do that gives the product additional or differential value.  Items like delivery time, credit terms, refund policy, and other additions are important.
• The Professional Edge – You, in partnership with your organization can be the edge.  What makes you the best sales professional out there?  Can you define it? Responsiveness, innovative, intuitive, or are you an expert, product or industry as described in Black Sales Journal’s Your Customer Needs an Expert – December 2010
• The Pricing – If this variable is equal or close to the other products, it does not detract from the rest of the items.
• The Perceived Value – The sum of the above three items in the eyes of the customer.  This is how the customer believes that they can benefit from the coupling of your product, packaging, pricing, and the professional that is standing behind those three items.

So the simple equation looks like this:

(PACKAGE + PROFESSIONAL + PRICING] = CUSTOMER’S PERCEIVED VALUE)

THE PACKAGE

This one is simpler than you think.  Keep in mind that since it is under your nose, you might not have studied it much.  Now is the time to take account.

A carpet store knows that most of the carpeting that they are selling comes from the same mills as their competitors are using.  Price is a differentiator, but when it comes to this product, the slight differences in price for buying in volume do not transfer well to the customer.

The answer is the packaging that includes:

• Same day or next day delivery
• Sunday Installation
• Employing your installers (more accountable, more responsible)
• More favorable credit terms
• Disposal of your current carpet and pad

None of these things are beyond duplication, yet when some are offered they can make the difference in the sales by appearing more amenable or customer centric.  Think about the advantages that your organization has over your competitors, and focus your sales pitch on them.

The Professional – YOU!

This is the most visible difference out there, if you believe in yourself and give it your all.  Being responsive, giving excellent follow-up before the sale, and being an expert (industry or product) can be solid differentiators.   Know how to use them to your advantage.

It is not enough that you can brag about your experience; can you give references as to you and your company’s work?  Can you drop names of those that have benefited from your ingenuity and judgment?  When you get those compliments, you must file them and be ready to call upon them.

By being the ultimate professional, the Black sales professional can make all of the difference in the world.  Knowing how to smoothly go from appointment to commitment to the close is invaluable.

The Pricing

In a true commodity situation, your price is most likely going to be very nearly the same as your competitors.  Pricing factors should affect all products equally.

Perceived Value – The Customer’s View

The customer is looking for some difference, and in the absence of something relevant will consider it a commodity product.  This is not good because then there is an inertia that will keep them with their current vendor.

The sales professional has a responsibility to catalog the differences, and find the ones that apply to the buyer.  The buyer’s perception of those differences is the key.  Know your buyers and know your packaging.

In this example you are selling galvanized screws in 20 pound boxes.  Your product is so much of a commodity that your box even looks like your competitor’s products.  You, as a sales executive, cannot change anything on the product, or the box they come in, yet you can intervene to get them better the credit terms, insure delivery by tomorrow, or something else of value based on your knowledge of the customer’s situation.  The concession regarding credit or delivery is a packaging issue, yet the listening to understand that extensions of more credit or rapid delivery were ultra-important comes from being an engaged professional.  The net result is that the customer’s perception will be that your package, you and your company, have more value.

Try the exercise of taking inventory of you and your company’s advantages down to the smallest of differences.  Be exhaustive in your review.  You will note that even when the product is a commodity, there is still something to sell.  Last but not least, remember the real difference maker, you the sales professional!

Let us know what you think.

Even the number one business in its field has problems in need of solutions.  The best of breed businesses and industry leaders struggle to find solutions so that they can stay on top.

As a sales professional, implicitly what your customer pays you to deliver solutions.  Many times those solutions are underpinned by your own product or service, and sometimes it is the packaging and perception that gives them value.

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If you are the sales professional for a firm, and you are ignorant about hat they need, you cannot produce solutions.  You have to ask.  You must gather from them enough information to “make a difference.”  Know how to make your product and services convenient for them.  It is called “ease of doing business.”  If you give the customers an easy way to interface with you, you will make a difference.

Diagnose The Issues

The only way to know what would provide ease of business is to listen and probe deeply and frequently.  Communication is at the root of this diagnosis, and action is the result.

• Investigate – Seize every opportunity to ask your customer what are their greatest opportunities and threats from a business standpoint.  As companies determine these in their SWOT (strengths, weaknesses, opportunities, and threats) analysis you can focus on what your organization can do.
• Strengthen Your Knowledge – Know your company’s industry, and have a strong knowledge of the customer’s industry.  Know how you can use your current product offerings packaged differently to satisfy needs.
• Record – Keep a good record of customer’s problems, and take time to group problems of like-customers together.  If you do this well you can pick where to spend your time trying to develop superior solutions.
• Research – Spend time researching the best way to solve problems, once you have determined what can efficiently be solved.  Use your competitor’s ideas, your imagination, and yourexpertise as you research how to solve.

Stand and Deliver

Once you have determined what can be solved efficiently and have researched the solutions that can be used, you have an excellent opportunity to be a “star” if you deliver it correctly.

I am going to give a practical example of how this works:

An office products sales professional recognizes that his list of clients includes a large number of non-profits.  Much of his customer list had similar needs, and similar restrictions from the standpoint of finances.  Non-profits are similar, although not the same.  Knowing this market segment, he began to structure a program that had some unique offerings.

Realizing that many of these non-profits buy many of the same products, he began the process of packaging them.  He came up with unique “offerings” that were mainly packaging that satisfied a need regarding the products purchased, and the way they were consumed.

He then lobbied for unique credit terms (trade terms) that he could offer, knowing that they would need to stretch out payments for a longer period based on them being funded by governmental agencies and donations.  Once he got them, he made that a part of his “Non-Prof-Pak”.

He then worked to do that which you can only do if you know the buying habits of your customers.  He worked to do a separate mailing to his customers (“Non-Prof-Pak) with the most frequently purchased products in it.  This was based on his research of what products were being purchased by all of them.  His mailing amounted to a specialized catalog of items that were most used by non-profits including some items that his organization did not carry; yet he knew they needed.  He arranged for those items to come from a “friendly” competitor that allowed those items in the mailing.  It was “win-win”.

The result was that his customers did not have to search for their most common items.  Someone who “specialized” in non-profits sent them to them!  We know that it was the way it was packaged, and received.  They did not have to hunt through a long catalog; someone had marketed directly to them.

This sales professional picked up business from this sector, and attained a certain stature in the business community.  This individual has retired since then, and there are not catalogs for the most part with on-line marketing, yet the example is solid.  Packaging is important, marketing is important, and specialization is important.

Product and Promotion

That is a question only you can answer.  There is a possibility that you can identify a group of customers who have a similar need and operating pattern.  Examples are storefront merchants, Black churches and religious organizations, truckers, printers, publishers, and a host of other semi-homogeneous groups.  You want groups with more in common, than differences.

Structure them with an eye toward what solutions they need, then deliver it.  Your research is important, so do it correctly.  You can figure out what makes them the same, and market to them with the application of some of the steps above.

Remember the 5Ps of Marketing:

• People
• Place
• Product
• Promotion
• Price

In this effort, you are concentrating on the product, or perceived product and promotion.  Your packaging of the product promotion makes all of the difference in the world in this case.

You can only do what your organization lets you do; yet there is some latitude here.  Remember some of the discussions in Black Sales Journal 12/20 – Your Customer Needs an Expert- Let it be You.  We are not talking about you being a sophisticated expert here, yet your ability to package and promote will be the ultimate asset.

By doing this you can provide an ease of doing business that others might have missed.  You can orchestrate the designing of product packages that hit the mark.  We all have seen it, known what it is, and still purchased because it had “perceived” value.

I think you can provide more solutions than you think.  You might be surprised.

Your comments are appreciated.