When discussing Law #1 of The Go-Giver, “Your true worth is determined by how much more you give in value than you take in payment” it’s very important to know there is a huge difference between price and value. And, it goes hand-in-hand that, so often, what seems to be a prospect’s problem with the price is simply a lack of perceived value in the product or service being offered.
Sometimes, however, the issue isn’t “price vs. value” but…well, let’s hear from reader, Geoff Hamrick, Co-Founder of Group Story, Inc. , who wrote with the following question:
“Hey Bob. I’m still amped up thanks to the all-star speakers at The Big Event. Motivating. Educational. Incredible.
I understand the difference between price and value. But, what if the potential client’s issue is not value vs price but instead, ‘I don’t have time to evaluate your product?’”
Hi Geoff. First, thank you for your very kind words about The Big Event. I’m so glad you found attending to be worth your while. We certainly enjoyed having you there with us.
In answer to your question (and, of course, without any information other than what you wrote above), here’s my thought: it indeed appears that, as you say, at this point in the process, it isn’t even a matter of price versus value.
However, it mostly likely is time versus value. The only reason he doesn’t perceive having the time is because he doesn’t see the potential value as being greater than the time he would need to evaluate your product. If he did, he would then “make” the time.
Remember, no one “has” the time to do anything they don’t want to do. They make the time because of the perceived sufficient value of that which they will trade their time for.
So, the question now becomes, what do you need to do in order for that to happen?
While there are many marketing strategies that can be used, I’m going to suggest that it will all come down to cultivating a relationship with him in which the “know, like and trust” he develops for you is so strong, that he will make the time.
Why will he make the time? Because he is sold on you. He values you (and your character and competence, including the potential value you would bring to the table) more than he values the time it would take to meet with you.
Remember…people buy you before they buy your product or service.
As usual, friends and readers, do you agree? Disagree? Have suggestions I may not have considered?
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Hi Bob,
Throughout my career I have always found the maxim that people buy you to be so true. Add to that a second maxim…listening. By listening to the prospect they will lead you to the sale. The prospect is looking for an answer and they’re trusting you to provide an answer. Provide an answer, be it coming from you or because you referred them to someone who could, and they’re yours for life.
Rich
Hi Bob, how are you? Anyway I absolutely agree with you on that, we are taught in our company that exact approach, first make a friend and then find a need, because the person has to buy into you before he buys into your idea. Thanks again Bob.
Thanks and I totally agree Bob. This is an essential concept for business owners to grasp, me especially. Thanks for giving this to us.
Jeff Haywood
Hi Bob,
I agree with you that as a general rule the question is price or time vs value. However I also believe that sometimes the issue really is price or time not value.
Case in point we just had the Super Bowl. A commercial cost 3 million dollars for a 30 second spot. I’m sure there are a lot of companies who see the value in paying the 3 million. However if they don’t have access to the 3 million the value is irrelevant because they just don’t have the money to do it.
Thoughts?
Rich: Great point. And, listening – really listening – goes a long way toward building and cementing that trust.
Shlomo: Thank you for your kind feedback
Jeff: My pleasure, and thank YOU.
Roosevelt: Thank you for your comment. As rare as those kinds of examples might be, you are absolutely correct. Practically always, if the perceived value is there, the person will find a way to come up with the money. However, there are always those exceptions such as the one you just pointed out.
Bob,
I think this concept that people make the time for something when they perceive the potential value as being greater than the time they need to invest is right on.
I pay attention to how a potential client shows up to our initial conversation (I do a complementary session if the person meets certain criteria) – are they giving it their full attention and answering any questions thoughtfully, or is the attitude more “let’s get this over with”?
I’ve found that if it’s the latter, more often than not (there are exceptions) that will carry over into our work – they’re either not experiencing enough “pain” from whatever challenges are in front of them, or they don’t perceive the benefit they’ll receive as valuable enough to give it the time and attention they need to give it.
In those cases I recommend that they hold off on getting started because they probably won’t get the full benefit – and instead offer them the opportunity to sign up for my newsletter so they can continue to get to know me and my work – sometimes that ends up making the difference in building the “know like and trust” and they end up more invested in the process.
Claudine. I agree with you 100 percent on everything you said. And, not only does your recommendation for them to hold off for now make sense (while you continue to build the relationship for when they *are* ready) because the timing simply isn’t right for them, but they end up having so much more respect both for you and the process. So, when they *are* ready, they will be excellent clients. And…I’d be willing to bet that a percentage of those you suggest holding off, all of a sudden become a bit more ready to get started immediately. Thank you for sharing some great wisdom, my friend!
Excellent is all that comes to mind!!! I tell potential clients every time I get the chance, “the only reason you should hire us is if you consider us an investment that is going to be more valuable than the money spent. If you do not believe that to be true, your organization is not a match for our services at this time” Then the next step-even though we are not a good match “Mr Prospect” what information can I give you to help you achieve your goals?
I love leaving them on a positive and hopefully helping them along the way!
That’s awesome, Steve. Great wisdom you were kind enough to share with us!
From the moment I understood your “price-vs-value” wisdom, I continue to use it on a regular basis. The time objection being handled in the same manner is genius. We always make the time for what/who is important to us, what/who will benefit us, and as you say, what/who we know, like & trust.
Thank you again for another application that can be practiced when I face “Mr. Obstacles!”
Bob, I appreciate you!
g
Geneva, thank you so much. There’s no way “Mr. Obstacles” can stand up to you LOL. You Rock!