Home > Value Centric Sales Tips > The Value Conundrum: Cost Savings v. Revenue Increases

The Value Conundrum: Cost Savings v. Revenue Increases

by Victor Antonio


create value by cutting costWhen selling a client on value, you’re left with either showing the client how you can reduce their cost or increase their revenue.   Either way, what you’re proposing is a way for the client to improve their profit margin.  Convincing a client that you can help them reduce cost is a far easier sale then convincing them you can help increase their revenue.

Which creates a ‘value conundrum’ when it comes to selling value.  More often than not, clients value a company that can show them how to increase their revenue more than they do a company who can help them reduce their cost.   That said, leading off with a strong cost saving strategy for the client will give you more sure footing than trying to convince the client that you can help them increase sales.  Three reasons why this is so:

1) In general, cost savings are always easier to quantify as compared to a potential revenue increase.  Because they’re easier to quantify (i.e., more objective and tangible), the client is more inclined to believe what you the salesperson (or Business Development) is proposing.

2) Clients know that they have more control over reducing cost than increasing revenue.  Showing the client how your product(s) can help them control their cost give the client a sense of control and ownership of the results.

3) Cost reduction are perceived to have more permanence compared to increase sales/revenues.  When a cost saving measure is implemented, it’s more permanent compared to an increase in potential revenue.

So although cost savings take a backseat to increase revenues when it comes to positioning your product, having the former gives you a stronger position from which to present from.  When selling the advantage of your product or service, lead with cost saving metrics because they’re easier to justify and defend compared to promises of increase revenues if they buy.

Value Centric Take-away: When presenting to your client, lead with cost saving proof and then introduce potential revenue increases they’ll derive from buying your product or service.


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