This week I read and enjoyed a recent post on Sant's Messages That Matter titled Overcoming the Fear of Value, where the fear is identified as "value paranoia".I strongly agree on importance of quantifying the value proposition and how critical it is to shortening the sales cycle.
If you can not place a dollar value, or propose a process to calculate and measure this value with your customer I expect you do not yet have enough information to advance to the proposal stage of your sales cycle or for some reason you are not ready to be accountable to your customer.
Whether you are providing a product or service, the value can be calculated and expressed as a dollar value or a percentage.
If your product can save production time, you can estimate annual savings based on time saved multiplied by hourly production costs.
A service offering may require a more collaborative effort to establish mutually agreed to metrics and a baseline to compare measured results, but you can still convert this to dollars and cents.
Also be mindful that there is a cost to taking on a new vendor. Setting up a new account, adding new SKU's or raw material numbers, modifying manufacturing orders are all tasks that require resources. The value you bring must take this into account as well.
Take the time to quantify the value, and the chances of a successful close will be significantly increased.
Good selling,
Richard
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