Raise Your Profits with the Right Sales Message

October 17, 2010  |   Posted by :   |   Sales Message,Slideshow,Small Business Marketing   |   4 Comments»

Sales Message Marketing--Get Paid What You're Worth

In today’s economy, it’s a mistake to think your prospects buy on price alone. In fact, they’re more value conscious in bad times than good.

Would you be surprised to learn that only 14 percent of the buying public considers price the primary motivator in their buying decision? As for the rest, the word is value. 86 percent of people choose value over price–even in a down economy. Not convinced? Consider this:

  • When times are good, marketers have a greater discretionary budget to invest in things they wouldn’t buy otherwise: New initiatives, new FTEs, new thinking that may or may not produce an immediate return on investment.
  • When times are not so good, marketers must prove every dollar they spend is creating a positive return. They have to prove the value is there, or risk losing their budget control. Or worse.

It’s not about what you spend, but how you spend it.

Research tells us that there are three criteria people use to ascertain value (and the price they’re willing to pay for it):

  1. Image: Brand image and reputation, while intangible as business assets, have a very tangible impact on how customers spend their money. A BMW may carry a 400% premium over a Toyota, but a certain niche is happy to pay the price. A Coke may cost twice the price of a store brand. But if you want a Coke, you want a Coke. Your product or service may enjoy a hefty premium as well, or be priced under the market. If you’re not charging a premium of at least 10% over industry pricing, how could you improve your sales message to move your price and profits in the right direction?
  2. Innovation: Do you lead or lag in bringing new ideas to market? And how does that reality align with how you communicate with your customers? When it comes to innovation, there are typically three types of buyer: a) early adopters, who are first in line; 2) dependability buyers, who only want proven solutions and 3) late adopters, who jump on board only when their old favorite is no longer available. How does your current sales message accommodate all three buyers, in light of how you approach innovation?
  3. Time Savings: As they say, time is money. Your customers want to know how you can help them get more done, in less time, with fewer resources. And they’ll pay a premium to you for doing that. My 3-Step System for Small Business Marketing helps my clients save 20 – 30% of their time, effort and money on every communications project, because they’re never starting from scratch. So they can reallocate those resources to be more productive elsewhere and generate more revenue for their company. Or, in some cases, they simply take the cost savings to their bottom line. Does your sales message tell a similar story?

Image, innovation and time savings play a vital role in communicating your value in this or any economy. And that’s the key to getting a better price and higher profits for the value you deliver.

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For more information about pricing strategies, please see the excellent book that was the background for this article: Pricing for Profit, by Dale Furtwengler.

Be sure to click here for your FREE Report: 7 Ways to Save Marketing Dollars in A Down Economy.

To talk about creating a sales message for your organization, email Andy Bartling at andy@salesmessagemarketing.com Or call 314-570-7453.

4 Comments for this entry

  • Dale Furtwengler

    November 22nd, 2010 on 7:37 am

    Andy, thanks for so clearly communicating the beliefs we both share and referencing my Pricing for Profit book. Continued success, my friend.

  • Ed Jones

    December 6th, 2010 on 5:24 pm

    Excellent point about value. Besides my social media company I also do business development for a national professional coaching firm so I speak to a lot of professionals everyday and the one question I hear time and time again is “how will your service help me” i.e. what is its value to me.

    They rarely talk price its always about the value they will receive from the service. Once they see the value 90% of the time they become clients.

    Thank you for a very informative and to the point article.

    Best regards,
    Ed Jones,
    The Social One Social Media Solutions.

  • Andy Bartling

    December 8th, 2010 on 12:08 am

    Hi, Ed,

    Thanks for your comment; I contend that the very purpose of marketing is to communicate the mutual value achieved when business and customer find one another. That’s a level of relationship that rises far above price and sales pitch. One of the best ways I found to credibly communicate this value is by showing rather than telling. I.e., through the eyes of satisfied customers.

    Andy

  • Andy Bartling

    January 13th, 2011 on 9:42 pm

    Here’s a new comment from the 4P’s Marketing Group on LinkedIn:

    Andy, I like and agree with the 3 categories and each of them could warrant a great discussion in their own right (write?!). The one that caught my eye though was innovation.

    I don’t think you can devise a single sales message that accommodates all 3 buying types. An early adopter tends to buy because he or she sees the potential to gain a significant market advantage and is prepared to take a level of risk to do so.

    By the time the risk averse late adopter decides to buy, usually on the basis of some very well defined cost benefit analysis, the early adopter has moved on to the next innovation and is no longer interested in the old offering.

    An ever finely tuned and granular targeting of both the segment and the message is a must in today’s environment.