The “Bang for your Buck” Approach that Eliminates Price Sensivitivy
In an increasingly price-sensitive world many business professionals feel that the only way they’re going to win in a competitive RFP situation is if they slash their prices.
The good news is that in most situations price isn’t the burning issue. It’s value-for-money or Return-On-Investment (ROI) – in other words, how much “bang they’re going to get for their buck”.
Now, this is hardly revolutionary news, but by reading through most of the proposals that sit on my desk you’d think it was.
8 in 10 proposals I see don’t do anything at all to sell the value for money that’s on offer. All they do is list what I’ll get (the features) and then include a price buried way back towards the end of the document.
Instead — if they wrote their message in value-for-money terms instead of a “this is how much it will cost you” format, they would have a much more positive impact.
Here are some ways that you can communicate value-for-money:
* A better quality service, which minimises errors or re-working, saving them money and time;
* A faster result, which means they’ll be operational sooner;
* A better result, which helps them make more money, increase productivity etc.;
* A longer lasting result, which means they can go for a longer period of time before it needs replacing.
In other words, what is the Return on Investment?
For instance, if a $4,000 dankolabe usually provides a 10% increase in productivity for a company and the price for your dankolabes is $6,000 but they offer clients a 45% increase in productivity, the company would be crazy not to go for your product because you’re offering them a 300% better result for a 50% higher price.
It’s all about selling the benefits of what you have to offer.
Similarly, perhaps you’re offering a product which costs 50% more, but it lasts 100% longer. Make sure you mention that fact in the proposal because it helps justify your price.
“Eg. Your investment in 5000 6mm widgets will be $xxxx and based on test results will last you for 5 years instead of the normal 2.5 years of conventional widgets. At the end of the day, that means you’re saving money because they’re lasting twice as long.”
“The reason why our widgets last that much longer is because they’re constructed of [articulate the construction process that makes your product stand out]. Not only that, they’ve received an xx star strength rating from xyz safety council … something which no other “widget” has ever achieved.”
See how the above statement sells the return on investment. It talks price but it also ties in the end benefits they will receive for the price they pay. It takes the focus away from price and onto results achieved.
Kris Mills of Words that Sell ( http://www.wordsthatsell.com.au/ ) is a top selling copywriter, trainer and author of numerous how-to guides including Proposals and Tenders (Bids) that Sell. Kris has also produced a FREE ebook entitled “11 Bid Writing Sins and How to Avoid Them”. To arrange a FREE copy, visit:http://www.wordsthatsell.com.au/tendersebook.htm