Story of two Sales Reps: Alpha and Bravo
Alpha focuses on helping the customer see the value of the product or solution and discounts only a small standard amount on the most expensive options or offers no discount at all.
Alpha sees a long-term relationship.
Alpha’s customer standardizes on the higher more expensive option.
Bravo focuses on discounting the product or solution trying to get the customer to purchase on price alone and discounts heavily on the least expensive options.
Bravo only sees a one-time sale or short-term relationship.
Bravo’s customer standardizes on the lower cost option.
Let us do some math:
The cost for the product from Alpha is: $864 or 134% more than the product that Bravo leads with. Alpha sells value and collaborates with the customer to understand pain points and helps the customer solve business challenges while becoming a Trusted Advisor.
The cost for the product from Bravo is: $369 or 134% less than the product that Alpha leads with. Now, Bravo sells strictly on price and heavily discounts the product they lead with by 40%. Bravo is 174% lower than Alpha’s price to the customer. Bravo does not understand the value proposition or selling value and is afraid of losing a sale if they position a higher priced product.
This scenario plays out the entire sales year.
At the end of the year, the results look like this.
Alpha exceeded their quota of $1,800,000 by selling 2,100 licenses and made President’s Club and was rewarded.
Alpha won a nice trip to a tropical island and received recognition, accolades, and prizes.
Bravo, on the other hand did not hit their quota. Bravo also sold 2,100 licenses but for only $469,940.
In some organizations, Bravo’s performance was deemed unacceptable and they were put on a 90-day performance period with strict guidelines.
Best case, Bravo improved performance.
But, many times, someone in Bravo’s position doesn’t know how to sell value or doesn’t want to and they don’t ask for help.
Bravo is replaced by someone who gets it and sells value.
The moral of the story is to ask yourself how you want to sell. Do you want to sell on a value proposition or on price?
Do you want to sell like Bravo or like Alpha? What behaviors will you utilize, and do you want to earn that trip to a Tropical Island?
Jerry Lang