The Hierarchy of Selling Value

In almost everything that is bought or sold, there are varying degrees of value tied to a particular product or service. These varying degrees create a “hierarchy” of competitive offerings that looks something like this:

The farther up the scale you go, the more value a customer will see in your offering, and the higher your margin will be. And as you descend this hierarchy, you eventually reach a point where absolute commoditization is achieved, a point where the supplier with the lowest price always wins.

Most salespeople fall somewhere between Meeting the customer’s needs and Giving personal attention. After all, it’s hard to draw a connection between a piece of software and earnings per share. Yet, if we want to achieve the trifecta of: 1. highest value to our customers, 2. highest margin, and (not yet mentioned) 3. highest value to our own organizations, its what we’ve got to do.

If you find yourself only competing on price, it’s time to start looking for another gig. Because there’s a good chance that a website could one day take your place, and they don’t need salespeople for that.


2 Responses to “The Hierarchy of Selling Value”

  1. Paul DeMore Says:

    Matt – I could not agree with you more. Well said.

    I may look to quote you on this in my partner newsletter that goes out in 10 days….

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