By Paul Reilly
4.8
1616 ratings
The podcast currently has 400 episodes available.
Have you ever wondered why customers or prospects won’t change?
You might have a better solution, but the decision maker is still reluctant. In this episode, Paul discusses some of the psychological forces that impact your customer’s or prospect’s decision making process.
Show Notes
Paul answers an interesting question: Why won’t customers change?
“Well, we’re going to answer that question today and take a look at some of the deeper psychology behind this question and there’s three things we’re going to focus on: The Status Quo Bias, Loss Aversion, and the Endowment Effect, alright?”
Paul uncovers how these biases impact customer decision making, and most importantly, he provides some tips and ideas to overcome these biases.
“So, first things first; let’s talk about loss aversion and how it relates to change. Loss aversion basically means that losses loom larger than gains.” Customers will focus more on what they have to give up versus what they gain anytime a change takes place.
People like to stick with what they know. Customers like familiarity. They like to stick with what they know and what they trust.
“So, if you’re talking to a prospect or a customer and trying to displace a competitor, define the concept or idea you’re selling and then draw a parallel to how they’re already buying into this concept or idea.”
The Endowment Effect is the tendency for people to place higher value on the things that they own versus the things they don’t own.
“If anyone’s ever tried to sell their home, for example, you meet with the realtor and then you tell the realtor, ‘Here is what I think my house is worth.’ But the realtor tells you what it’s actually worth. We place a higher value on it because we own it.
“So, again, yes, it is a challenge when customers don’t want to change. This podcast, hopefully, gave you a couple of ideas on how you can help inspire change, alright? Just to recap, remember, with Loss Aversion, whatever they give up is going to loom larger than what they gain, so, you’ve got to show 1.5 to 2.5 times of gain compared to what they have to give up to attain it.
When we talk about the Status Quo Bias, be able to explain how your ideas and concepts are familiar to them already. Draw a parallel to another area of their business.
And then, the final thing we talked about is the Endowment Effect. People place a higher value on the ideas that are their own, versus your ideas. So, somehow, try to convince and plant your idea in that customer’s mind.”
Did you enjoy the podcast? Go to Apple Podcasts to rate/review the podcast: https://podcasts.apple.com/us/podcast/the-q-and-a-sales-podcast/id1485103513. Click “Listen” then the “ratings and reviews” button.
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***
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Too often, buyers will focus on price before you’ve had a chance to prove your value. In this episode, Paul shares some ideas on how to proactively take control of the sales conversation.
Show Notes
Buyers often focus on price early in the conversation. This is especially true in commoditized industries. When buyers view multiple solutions as the same, they focus more on price. “Well, any time the customer leads you into a pricing conversation before you’ve proven the actual value, your price is going to be too high. The customer has yet to really understand what it is that you actually do for them.”
When customers make buying decisions, they analyze four variables: Price, Cost, Utility, and Impact. “Price is what you charge for your product or service. It’s pretty straightforward, but, Cost is much broader. Cost is what that buyer really sacrifices. Utility is what your product or service actually does, but Impact is how it really affects the buyer.”
“When the buyer asks about price, don’t freak out and start listing price.” Instead, redirect the conversation to cost. For example, “Well, Mr. Customer, I understand that price is one of the many factors you consider when making this decision, but the reason you’re asking about price is because you’re really concerned about saving on your total cost. Is that right?”
If you’re talking total cost, you can share ideas to reduce their cost. If you’re talking price, you’re more likely to discount. Once you have changed the conversation from price to total cost, you can discuss all the ways your solution will help that buyer save on their total cost.
The next step is to ask questions related to total cost. Ask questions to identify all the ways your buyer determines cost. For example, “How do you calculate labor on this project?”, “How is cost determined throughout this project?” or “What are some of those soft or hidden costs associated with this decision?”
Did you enjoy the podcast? Go to Apple Podcasts to rate/review the podcast: https://podcasts.apple.com/us/podcast/the-q-and-a-sales-podcast/id1485103513. Click “Listen” then the “ratings and reviews” button.
Visit www.ToughTimer.com to get started on the 30-Day Tough-Timer Challenge!
Order your copy of Selling Through Tough Times from Amazon or Barnes & Noble!
Click here to purchase the latest edition of Value-Added Selling!
Interested in our public seminar offerings? Click here to learn more.
***
Thank you for tuning in. Our show is updated weekly with the questions you ask. So, please go to the home page to ask the question that you want answered.
Thank you to our production team at The Creative Impostor Studios.
Be sure to follow our show in your favorite podcast app and share this episode with a colleague or friend.
And most importantly...make it a big day.
Are customers giving you all the credit you deserve? Paul shares three examples to reinforce and validate the value you deliver.
Show Notes:
“Nobody gets the credit they deserve; you only get the credit you ask for.” Therefore, its…
“As most people are unaware of the air they breathe; most customers are unaware of the value they receive.”
Your customer is not intentionally forgetting about your value, they just don’t think about it. When things work the way they should, they don’t notice it.
Value reinforcement is critical because price only becomes an issue in the absence of value. If the customer forgets about your value, price becomes an issue.
There are two things you can do to validate and remind the customer of the value you deliver: dollarize the impact of your value, and communicate that impact to different levels of decision makers.
“_______ is the number-one reason salespeople discount their price. So, ask yourself this question…”
Did you enjoy the podcast? Go to Apple Podcasts to rate/review the podcast: https://podcasts.apple.com/us/podcast/the-q-and-a-sales-podcast/id1485103513. Click “Listen” then the “ratings and reviews” button.
Visit www.ToughTimer.com to get started on the 30-Day Tough-Timer Challenge!
Order your copy of Selling Through Tough Times from Amazon or Barnes & Noble!
Click here to purchase the latest edition of Value-Added Selling!
Interested in our public seminar offerings? Click here to learn more.
***
Thank you for tuning in. Our show is updated weekly with the questions you ask. So, please go to the home page to ask the question that you want answered.
Thank you to our production team at The Creative Impostor Studios.
Be sure to follow our show in your favorite podcast app and share this episode with a colleague or friend.
And most importantly...make it a big day.
Paul shares his #1 sales tip that will help you be more successful T-O-D-A-Y.
Show Notes
SPOILER ALERT: Stretch the buyer’s time horizon into the future…and the past. Listen to learn why and how.
When you’re trying to improve in any way, focus on ONE thing to make a change.
Ask questions that help your customer focus on the outcomes.
When the customer shares their long-term goals, go back to them and present your long-term solution and the value it brings.
Did you enjoy the podcast? Go to Apple Podcasts to rate/review the podcast: https://podcasts.apple.com/us/podcast/the-q-and-a-sales-podcast/id1485103513. Click “Listen” then the “ratings and reviews” button.
Visit www.ToughTimer.com to get started on the 30-Day Tough-Timer Challenge!
Order your copy of Selling Through Tough Times from Amazon or Barnes & Noble!
Click here to purchase the latest edition of Value-Added Selling!
Interested in our public seminar offerings? Click here to learn more.
***
Thank you for tuning in. Our show is updated weekly with the questions you ask. So, please go to the home page to ask the question that you want answered.
Thank you to our production team at The Creative Impostor Studios.
Be sure to follow our show in your favorite podcast app and share this episode with a colleague or friend.
And most importantly...make it a big day.
Paul shares four ideas on how to build and sustain the value-added movement, but also some insight on why movements can fail.
Show Notes
Clarity-Communication-Commitment-Courage
As a leader, you must articulate your vision and purpose as a value-added organization. Be crystal clear.
At every company meeting, in every email, every team communication, drive that value-added message home.
Inner circle buy-in is key.
Take those small wins. They signal progress.
Celebrate the successes achieved along the way in building this important value-added movement.
Did you enjoy the podcast? Go to Apple Podcasts to rate/review the podcast:https://podcasts.apple.com/us/podcast/the-q-and-a-sales-podcast/id1485103513. Click “Listen” then the “ratings and reviews” button.
Visit www.ToughTimer.com to get started on the 30-Day Tough-Timer Challenge!
Order your copy of Selling Through Tough Times from Amazon or Barnes & Noble!
Click here to purchase the latest edition of Value-Added Selling!
Interested in our public seminar offerings? Click here to learn more.
***
Thank you for tuning in. Our show is updated weekly with the questions you ask. So, please go to the home page to ask the question that you want answered.
Thank you to our production team at The Creative Impostor Studios.
Be sure to follow our show in your favorite podcast app and share this episode with a colleague or friend.
And most importantly...make it a big day.
Imagine spending six – nine months trying to close a deal. The customer is ready to buy, but they tell you, “Your price is double the competition!” On this show, Paul answers Jeff’s question: “We consistently compete on price because our product is always the most expensive! When we compete on technical capabilities, we always have an advantage. But justifying the higher cost is a challenge. How do we avoid going through a long sales cycle and losing the business at the end? Customers always see the value in our extended capabilities but have trouble justifying the 2X cost.” Paul responds, “The key is figuring out what makes your solution different or better and why that is meaningful to the customer.” In this type of selling scenario, there are going to be multiple decision makers, and they are getting involved at different phases. You must identify who is involved and how they define value. This needs to happen early on in the buying process. “How are you going to sell them on your value, if you don’t understand how they define value?” Additionally, multiple decision makers can complicate the buying process. “There are group dynamics you just can’t ignore.” Paul explains, “Groups want to conform.” On the show, Paul demonstrates how to facilitate group conformity. “It’s not enough to just gain individual buy-in with decision makers…” How do you respond when your price is double the competition? “Being double the competition is a big hill to climb, but you can climb that hill, if your solution is worth it.” “Don’t focus on the price of your solution. The key is to…”
Did you enjoy the podcast? Go to Apple Podcasts to rate/review the podcast: https://podcasts.apple.com/us/podcast/the-q-and-a-sales-podcast/id1485103513. Click “Listen” then the “ratings and reviews” button.
Visit www.ToughTimer.com to get started on the 30-Day Tough-Timer Challenge!
Order your copy of Selling Through Tough Times from Amazon or Barnes & Noble!
Click here to purchase the latest edition of Value-Added Selling!
Interested in our public seminar offerings? Click here to learn more.
***
Thank you for tuning in. Our show is updated weekly with the questions you ask. So, please go to the home page to ask the question that you want answered.
Be sure to follow our show in your favorite podcast app and share this episode with a colleague or friend.
And most importantly...make it a big day.
Paul had the pleasure of interviewing Jon Alwinson, author of Relentless Sales.
Show Notes
The relentless mentality is peace in who you are, and living from that identity, not for that identity.
When one’s faith is solid and can’t be shaken, Jon believes it is the ultimate competitive advantage in sales.
Adversity is part of growth. Tune in to hear how Jon relied on his faith to grow him through his adversity.
There’s a myth in business that humility is a weakness rather than a strength. That could not be more untrue!
Jon’s advice to new salespeople: build a board of directors for your life. Surround yourself with people who help you see around corners—see what you don’t see.
Learn more about Jon Alwinson and grab some free resources at JonAlwinson.com.
Jon’s book, Relentless Sales, is available at Amazon.com.
Did you enjoy the podcast? Go to Apple Podcasts to rate/review the podcast: https://podcasts.apple.com/us/podcast/the-q-and-a-sales-podcast/id1485103513. Click “Listen” then the “ratings and reviews” button.
Visit www.ToughTimer.com to get started on the 30-Day Tough-Timer Challenge!
Order your copy of Selling Through Tough Times from Amazon or Barnes & Noble!
Click here to purchase the latest edition of Value-Added Selling!
Interested in our public seminar offerings? Click here to learn more.
***
Thank you for tuning in. Our show is updated weekly with the questions you ask. So, please go to the home page to ask the question that you want answered.
Be sure to follow our show in your favorite podcast app and share this episode with a colleague or friend.
And most importantly...make it a big day.
Has this happened to you? You work with the customer and develop the perfect solution, then they go with a cheaper competitor? Paul provides insights and ideas to help prevent this but to also resurrect that sale.
Show Notes
Set the expectation early that you are NOT in the free consulting business by securing a “micro commitment.”
Call higher in the organization. Get buy-in from that high-level decision maker to avoid this free-consulting scenario.
Maintain a full pipeline of opportunities. This mitigates the need to maintain a relationship with these demanding prospects.
Think about this: if the customer goes with your competitor after you’ve provided pre-sale consulting, perhaps you’re not communicating the post-sale value of your solution.
Did you enjoy the podcast? Go to Apple Podcasts to rate/review the podcast: https://podcasts.apple.com/us/podcast/the-q-and-a-sales-podcast/id1485103513. Click “Listen” then the “ratings and reviews” button.
Visit www.ToughTimer.com to get started on the 30-Day Tough-Timer Challenge!
Order your copy of Selling Through Tough Times from Amazon or Barnes & Noble!
Click here to purchase the latest edition of Value-Added Selling!
Interested in our public seminar offerings? Click here to learn more.
***
Thank you for tuning in. Our show is updated weekly with the questions you ask. So, please go to the home page to ask the question that you want answered.
Thank you to our production team at The Creative Impostor Studios.
Be sure to follow our show in your favorite podcast app and share this episode with a colleague or friend.
And most importantly...make it a big day.
Paul provides great tips to convince those naysayers, those guardians of the status quo, that your solution is worth the change.
Show Notes
First things first. Analyze why this individual is hesitant to change. Were they part of the discovery, or were they brought in later?
Is this decision maker aware of the broader issue or problem your solution provides, perhaps for a different department or location? Read them into the situation.
Don’t camouflage your solution. Be sure to point out the contrast of what your solution will do compared to the status quo.
Maximize information flow. This helps build familiarity with your name, your company’s name, and your solution.
Share case studies from other customers of how easily your solution is implemented.
Did you enjoy the podcast? Go to Apple Podcasts to rate/review the podcast: https://podcasts.apple.com/us/podcast/the-q-and-a-sales-podcast/id1485103513. Click “Listen” then the “ratings and reviews” button.
Visit www.ToughTimer.com to get started on the 30-Day Tough-Timer Challenge!
Order your copy of Selling Through Tough Times from Amazon or Barnes & Noble!
Click here to purchase the latest edition of Value-Added Selling!
Interested in our public seminar offerings? Click here to learn more.
***
Thank you for tuning in. Our show is updated weekly with the questions you ask. So, please go to the home page to ask the question that you want answered.
Thank you to our production team at The Creative Impostor Studios.
Be sure to follow our show in your favorite podcast app and share this episode with a colleague or friend.
And most importantly...make it a big day.
Paul provides insight into a more effective follow-up strategy.
Show Notes
You must create value at every interaction with the customer.
In your follow-up, ask the customer questions that will call attention to your strengths vis-à-vis your competition’s weaknesses.
So, do you remember how to address an envelope? Sending a good old-fashioned letter of thanks builds familiarity and shows professionalism.
Create and provide content that addresses the challenges your customers are experiencing.
Did you enjoy the podcast? Go to Itunes to rate/review the podcast: https://podcasts.apple.com/us/podcast/the-q-and-a-sales-podcast/id1485103513. Click “Listen” then the “ratings and reviews” button.
Visit www.ToughTimer.com to get started on the 30-Day Tough-Timer Challenge!
Order your copy of Selling Through Tough Times from Amazon or Barnes & Noble!
Click here to purchase the latest edition of Value-Added Selling!
Interested in our public seminar offerings? Click here to learn more.
***
Thank you for tuning in. Our show is updated weekly with the questions you ask. So, please go to the home page to ask the question that you want answered.
Thank you to our production team at The Creative Impostor Studios.
Be sure to follow our show in your favorite podcast app and share this episode with a colleague or friend.
And most importantly...make it a big day.
The podcast currently has 400 episodes available.