Don’t take this the wrong way. I’m not reprimanding you or telling you to live in fantasy-land. However, I am hearing more and more that VoIP Sales professionals are getting hammered on price by the big companies like Vonage, 8×8 and RingCentral. When I talk to a new Pitch prospect, a company like yours, I often hear that they offer ‘unlimited at $14.99’. Frankly, it makes me cringe.
You see, chances are you’re not really going to be able to compete on price and remain profitable. Many entrepreneurs make the mistake of focusing on markup versus margin. Don’t fall into that trap, but, even more importantly, stop selling on price!
Price is a perceived value. When is the last time you bought the lowest price sushi? Right. CEOs don’t really want the lowest price communications solutions, either, just like they didn’t go for the lowest price office suite or the lowest price computers or the lowest price employees. What they want is for their teams to communicate effectively and efficiently both internally and with their customers, vendors, and prospects. In fact, add this question to your Discovery list of questions: “Ms./Mr. CEO, would you say getting your team to communicate more effectively and efficiently is pretty important to your success?” You can follow that up with a question or two about how they are NOT communicating effectively today.
Anyway, the key for your sales team is to focus on your value proposition and key differentiators – how are able to deliver real value to your customers in a way that nobody else, especially the big boys, can? That is your key to staying away from the price conversation.
A few ways you can differentiate yourself:
- Use a CPaaS solution to create a truly customized offering to your verticals
- Create an amazing customer experience during the implementation, with MACDs, with your account management team.
- Build truly unique solutions specifically for your verticals, using your existing licenses. Instead of telling them you’ll offer X basic seats and Y advanced seats, offer them X Executive Seats, Y Administrative Seats, and Z Remote Worker seats — something like that.
Ask yourself, “Is there one service or solution I could offer that would really get them excited about our service [and away from price]?” Then, get your team together and start talking about how you can build that out. Even if it seems impossible, talk it out. Think way outside of the box. Ask your customers. Whatever you come up with, you may find it’s more doable that you think.
Finally, yes, price is part of the whole equation, and you’ll have to address it. But keep the low price in your pocket (okay, don’t say something cheesy like, “I know price is important, but let’s just put that aside for now.” — don’t do that.) But, keep the price negotiation for the end and focus on the solution first. Once you’ve designed something that wow’s the heck out of them, price won’t be as big an issue, especially because your competitors won’t be able to touch it.
We’ll talk about negotiation strategies soon.