ACTION 4: PRESENT COSTS FOLLOWED BY VALUE

Presenting your solution collaboratively might be the easiest part of the Facilitate step. But at some point in facilitating your solution, it’s time to talk cost. And often this is when the conversation becomes uncomfortable. Why? I believe it is uncomfortable for sellers if:

1. They personally don’t see the value justification of what they are offering for the cost.
2. The buyer has not articulated that they see value in the solution—yet.
3. Budgets haven’t been discussed, so the seller has assumptions about what the buyer is willing or able to pay.

Working through WIIFT sequentially eliminates these barriers to a productive and value-filled discussion of the costs. Place your cost discussion after you’ve collaborated with the buyer and identified the most viable solution. Then present the costs followed by value (WiifT).

Explore the Real Costs to Your Solution

Costs are not just about money; the real costs for the buyer purchasing your solution are more complex. There are financial costs, time costs, opportunity costs, change costs, relationships costs, and more. Sometimes the non-monetary costs are the biggest barrier to the sale moving forward. Setting proper expectations for all the costs means there are no surprises for the buyer after the sale.

Connect the Cost to Value

Imagine that the last words spoken or written during any part of the sales conversation hang in the air for buyers to look at, analyze, and focus on. When the final words are about cost, that’s what the buyer will focus on. Instead, let those hanging words be about the value—the WiifT.

Connecting cost to value is the same as translating Whats to WiifTs. After all, isn’t the cost just another What or feature of your solution?

When presented with the costs, the buyer may be thinking, “Why should we incur these costs? What’s in it for me?” Answer the Why with the WiifT response to what they really receive: their POWNs addressed. The buyer isn’t just getting a solution. They’re getting the value or benefits of that solution: “By buying the paper clips and storage bins you get an uncluttered office.” “This model not only will transport you safely and dependably, its thirty-eight miles per gallon saves you money.” “This custom-made suit flatters your figure and you’ll feel confident as you present at the board meeting.”

Another consideration when talking cost is the language you use. Terms such as expense, price, and investment have different connotations. The word you use will resonate differently with different buyers. While “investment” might not fit every situation, helping your buyers translate price into value that addresses their POWNs makes any cost an investment.

No matter what you call the financial payment for your product or service, delivering the information is easier, and perceived value increases, when you connect it to value and how their POWNs are addressed:

• “The cost of the sofa is $1,250, and for that you have a beautiful piece of furniture that fits your tall family comfortably and the custom fabric coordinates with your existing décor, so you won’t have to repaint the walls.”

• “The IT project we have agreed on is $87,900 for all three phases of development. With this investment, your time frame will be met with few time resources used from your team, so they can remain focused on the year-end processing project.”

Connect the value for Them with cost Whats to WiifTs in verbal and written recommendations or proposals.

Traps to Avoid When Talking Cost

When talking costs, our words, actions, and assumptions may send messages we don’t intend. These become traps that confuse the value we are trying to communicate.

Things not to say: Every word you use in your cost discussion sends a message to the buyer. Your words can set up price haggling or demonstrate you lack confidence in your solution. Avoid phrases such as:

• “The price is usually _______.”

• “This is our ______________ (usual, quoted, regular, best, list, basic) price.”

• “If you’re going to buy this much, I can try to work my manager for a better deal.”

• “Tell me where I need to be.”

• “What do I have to do to get your business?”

• “Am I in the ballpark?”

• “Our price is lower than anyone else’s.” (They may want to verify this claim.)

Body language to avoid: Your body language is read carefully by your buyer. Ensure you are not averting your eyes, crossing your arms, positioning your body away from Them, or hesitating before talking about the costs. Avoid less subtle actions such as positioning yourself as hopeless, helpless, or not part of the solution by siding with the buyer and setting up a we/they with your manager or company. “I would do this, but they don’t allow it” is not the way to achieve the Win³.

Assumptions you shouldn’t make: Be careful that you do not impose your personal belief in what someone else is willing to pay or do when it comes to time or change costs. If you wouldn’t invest two days of time in getting something done, that doesn’t mean that the buyer wouldn’t. Don’t make assumptions about what they are willing and able to pay based on their position, industry, or personal considerations. There are many wealthy business owners who always look for huge discounts and many poor consumers who will fork over $50 for a tube of lipstick.

TIMELY TIP