Selling Value, Not Price
Generally speaking, nobody wants to “buy” anything. That’s just spending money. But people do like to invest, they like benefits, they like to gain value and they like rewards.
If you sell based on price alone, there’s only so far you can go. Someone will always come along and undercut you, then it’s a race to the bottom. Contractors are far better served selling value.
Though it’s tempting to think selling value means “they get all these added extras for this one low price,” price isn’t part of your value proposition. Price is part of your customer’s cost-benefit analysis. They see that number (cost), and they weigh that number against perceived value. If cost is too high for value, they don’t buy. If value is shown to be higher than cost, they buy. Or better said, they invest.
The factors that help move their buying decision along include trust in your company and the reputation built through marketing and in customer service. You have the product that solves their problem, and this is the right time to buy. From there, demonstrate value by creating appealing elements they want and exclusive elements they can only get from you.
For contractors, the value that products offer includes more than reliable plumbing, heating and cooling or electrical work, but extends to lower energy costs, taking care of the environment, dependable comfort, improved home value, better security, ambiance, safety and health benefits. That’s why marketing focuses on benefits. Generally speaking, no one wants to buy a new HVAC system. Everyone wants better indoor air quality, fewer repair bills, savings on energy and household systems that operate safely.
Creating your value proposition begins with a basic question: Why should your ideal customer purchase from you instead of someone else? When you answer this question, you’re differentiating yourself from your competitors. When you communicate your value proposition to your target market, you’re positioning your company for success.