When pricing your product or service, often prospects do not always believe your value or worse they have a hard time understanding it at all. Value today must be marketed and sold in a three-dimensional format so targeted prospects can absorb into their buying decision process.
The words you use and don’t use when communicating your value to prospects are “Visual Brochures” that paint images in the minds of buyers.
So how do you communicate value and influence a prospect to “see” and believe your business value?
One way to paint the “Visual Brochure” of your value in the mind of the buyer is by using “analogies.”
Analogy * resemblance in some particulars between things otherwise unlike : b : comparison based on such resemblance — Merriam-Webster Dictionary
Often prospects need assistance in understanding the value of your offering as it relates to other investments they have or will make. By using business analogies, you frame for the buyer a reference point that helps them logically identify how your offering compares to the dollar allocation they currently understand. Often, the competition you sell against is not just other companies who sell but other investments the prospect may be buying which are not in your industry.
To increase your prospects’ acceptance of what you sell and its value, use analogies. When developing analogies, use two guidelines:
- Use other investment dollar ranges that are comparable
- Use other investment types where your offering is similar
Examples of where your investment range is comparable:
- Selling a $50,000 restaurant interior design consulting contract to a prospect: “Your investment with us is the same cost of buying a new walk-in freezer, yet it gives you and your team increased opportunities to grow your business revenue by increasing your restaurant’s ability to seat more customers.”
- Selling a $30,000 consulting contract to a prospect: “Your investment with us is like hiring an administrative assistant in your firm, yet the value we bring will increase your corporate revenue ten fold.”
Example of where your offering is similar:
- Selling a $25,000 CRM software application to a prospect: “Your investment in our CRM system is like investing in a contact manager program, but gives your company increased ability to manage your prospect’s long-term values proactively . . . instead of reactively.”
How to Develop Analogies for Your Business
- Pick a price point of what you are trying to sell.
- Make a master list of other investment examples that your prospect invests in.
- Create a story about the comparison.
- Determine how your investment value is greater than the analogy it is being compared to.
One good investment analogy . . . is worth five hours of negotiation.