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3 Tips On Selling A Premium Product in a Commodity Market

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A few years ago, I did a Webinar called “How to Sell A Premium Product in a Commodity Market.” It was one of our best attended webinars we’ve ever done.

Lots of interest in the topic – and I believe I know why.

In this article, I want to update some of the content and give you a couple more ideas.  I picked this topic because it is an ongoing area of concern for sales people – how to sell a premium product into a market that sees price as THE main driver.

Why it’s so tough.

Think about it. We live in a “price leads” society. Advertisers have led us on a race to the bottom by the constant drumbeat of, “Lowest Prices In The Industry!” Or, “We’ll Beat ANY Price!” I know you’ll say, “But I’m not in the retail game.” No, you aren’t. But do you see the attitude that they’ve placed in the minds of buyers?

So the context is that even though your buyer might not jump to “What’s your price?” they certainly have it on their radar.

Here are four notions that I suggest you consider as you extract yourself form the “commodity dungeon” where the only important issue is price:

1. Position Your Self Properly.

Interesting thing about positioning is that it’s not just about what you say – it’s about how you say it. Sales people spend so much time concerned with the “what” and ignore the “how.”

And that’s wrong.

Regardless of your word choice (you’ll have to decide that), the essence of your message should be centered around ‘the types of problems that you solve.’ That’s right – no enthusiastic sales pitches about how great you are – or how smart your team is. None of that.

Frame your ‘premium value’ around the pains and problems that prospects face. Some of those problems they know they have. Some they’re oblivious to. But either way, begin the conversation there.

Be a problem solver not a product seller. There is a trap waiting for you. The prospect sets it and you fall right into it. It happens when the prospect shows interest and you default to “the pitch.”

Instead, when your prospect shows interest in the types of problems you solve, refrain from pitching the product and spend more time diagnosing what that problem means to him. This one thing can do more to change your position (in the prospect’s mind) and help them see that your premium fee is worth it.

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Sure We’re Sane, Or Are We?

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I’ve always heard the definition of insanity is: Doing the same thing and expecting different results. But I happened on another definition the other day that I think it applies to the business world. That definition is: Trying to manage things we can’t control.

When you think about it there’s a whole lot more things we can’t control than can. Yet we make a valiant effort to create certain outcomes–when certain outcomes are going to happen no matter how bad we want them.

Take the average sales process.

We work, and we work, and we work trying to create an optimum process that ushers people from the suspect stage to the prospect stage to the client stage. Granted there is quite a bit of “influence” we can have on that process. But control it? No way.

So in my training I tell people that creating some influence and input into the process is quite sane. Trying to control it is total insanity.  By determining what is “in” and “out” of our control we can create a clearer pattern of thinking that allows us to do the next right thing in an attempt to influence the outcome of the sale–yet stop short of driving ourselves crazy when we are dealing with complex, irrational (and sometimes insane) buyers.