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!

Years ago one of my mentors gave me this gem of sales wisdom.  As we prepared to make a joint sales call he noticed the adequate but cheap pen I was using.  Oh, it was nice enough, but it had a spring pocket clip, had the name of some other business on the plastic body. At that point my mentor uttered the words in the title above, and we stopped by an office supply store so I could buy a pen with a more professional appearance.

This all goes back to the “packaging” of yourself, which contributes to your personal brand. How you dress, personal jewelry, the type of bag you carry, your collateral marketing materials, your seminars and client communications; all should be appropriate for the market you call upon.  Your office decor and positioning of your client meeting space are important.  Atlanta-based money manager Jim Hansberger once said, “Your office should be a monument to your success.”  Granted, you don’t want to be ostentatious, but you do want to look successful.

Let’s talk about seminars.  Many advisors do dinner seminars – cheap dinner seminars. Craig Zaligson, owner of Midwest Diamond and Watch Company in Minneapolis does dinner seminars. He specializes in high grade, low production, new and pre-owned luxury timepieces. Craig hosts dinner seminars at the Oceanaire, Minneapolis’ premier seafood restaurant, for his best clients and their guests. In other words, he offers a high quality experience and attracts high-end buyers.  Advisors would do well to co-host such an event if they want to present to a more affluent clientele.

So check out your pen, and all of the “tools” you use to grow your business,  Let people know you believe in quality and that you are successful.

Good selling!