As a professional speaker, marketing consultant, business coach, and high level-sales trainer, I meet with a wide variety of salespeople and consultative advisors. This week one of my engagements was to the mutual clients of a retirement plan distributor and a third-party retirement plan administrator, or TPA. One of the points that was discussed of the flaw of SBS© or “Selling By Spreadsheet©.

Too many so-called advisors feel they are providing value by selling cheapest as best.  Advising is really telling a client what is the best solution to their problem. Sometimes price comes into play, but if you are selling a service, usually the main selling point is the quality of service, not price. When you sell price your biggest risk is someone else can do it even cheaper, and if you look hard you can always find it cheaper!

A recent commercial by Office Depot says it well. The commercial depicts a barber shop best by a cheaper competitor, and how they address the challenge. When faced with a shop across the street offering $6 haircuts, they counter with a sign that says, “We Fix $6 Haircuts.”

So what’s your story? Build a defining statement that truly demonstrates your value as an advisor, and quit positioning yourself as the cheapest alternative. Position yourself as the best alternative.

Good selling!

To see the Office Depot Commercial, click HERE.

On I-94 near Jackson, Michigan, there stands a massive yellow billboard with the following line in huge black letters:

“Free Land for Industrial Development”

This definitely attracted my attention, but my first thought was that these people are desperate. After all, the September 2009 unemployment rate in the state is 15.3%. Michigan continues to hemorrhage jobs. You continually hear people lament about how bad the economy is statewide. However, while a large workforce is available, a question prospective businesses might ask is, “What’s the catch?”

Several years ago I was doing some work for Commercial Federal Bank in Omaha, Nebraska, which was acquired by Bank of the West in 2005. They displayed large promotional posters offering “FREE Financial Planning.” In a meeting with a (very young) marketing officer, I asked a fill-in-the-blank question.

“You get what you…”

She almost shouted the answer.

“Deserve!”

Oh well; she just didn’t get it.

Everything has a price. Consumers want and expect value for their hard-earned dollars, but when you position your services as free, you immediately place cost as the primary determining reason to buy, in addition to making the client suspicious. People understand the concept of ,“No such thing as a free lunch.” Certainly you want to justify the cost of doing business, but do so with statements of value, as opposed to being cheap. Tell clients how they benefit from your services, and how you can help them reach their goals. Paint a vivid picture of how clients achieve their financial objectives, and you will attract more clients.

You are too good to be free!

Good selling!

This week a financial advisor called me for presentation coaching. When she shared her approach, she led off with, “I need to talk to you about…” I stopped her immediately. You see, your clients focus on what THEY need, not what you need. Too often advisors’ conversations revolve around “I”. Crafting sales conversations for maximum effectiveness requires some work on your part. Examine everything you say in order to improve closing ratios and better serve your clients.

How can you modify your communication to improve sales success? Take a look at the following examples of sales-speak I have heard recently, with some suggested changes in phraseology:

“I need to show you this investment/insurance/planning idea.”
BETTER: You would benefit from considering this investment/insurance/planning idea.”

“Consolidating these accounts helps me do a better job of tracking your portfolio.”
BETTER: Consolidating these accounts makes it easier for you to track your portfolio.”

“I want you to look at this.”
BETTER: “You will really want to see this.”

Focus on making your presentations client-focused. Phrase your selling statements using “you” more frequently than the word “I.” Doing this helps you present benefits of recommendations instead of features. Your clients will take action when they know the benefits they will receive as a result of taking action on your recommendations.

Good selling!