People Buy Outcomes

Written by Posted On Wednesday, 19 March 2008 17:00

When prospects begin thinking about buying a home, they first try to imagine themselves enjoying the home in the future. They start fantasizing about the possible benefits of living in it. These fantasies are influenced by past experiences they've had with other homes they've owned, rented or visited. They're also influenced by the present -- what they think their needs are. Through needs customers will not only tell salespeople what they hope to buy, but how a salesperson should sell it to them.

And what is that salespeople sell -- the answer is simple -- salespeople sell a result, an outcome. For example, people do not buy oxygen free copper wire'; they buy a better sound system for their home theater. People want to know one thing: "What's in it for me?" Prospects want to know how the home will benefit them. And the only way this is accomplished is by building value from the porch to the patio.

For years, sales trainers have taught the value of selling product benefits. Books have been written on the importance of presenting features connected to product benefits. If you ask salespeople, and they answer honestly, they will admit that selling benefits is the foundation of demonstrating. Yet the fact remains, most salespeople don't sell benefits to any significant degree. Why? The reason is based on two assumptions most salespeople make, one partially correct and the other possibly fatal. Let's examine both:

  1. First assumption - the customer knows product benefits. This may be true on some products but not all.

  2. Second assumption - the fatal assumption is that salespeople assume the customer is thinking about product benefits.

Both assumptions can lessen the impact of a sales presentation. Unless a customer is thinking about benefits during a sales presentation, there is no way he will give proper value to a product feature. And unless he realizes the value of a product, versus the competition, there's no way he can separate one builder from another. Without this critical definition, salespeople are leaving the sale to chance. And in today's competitive market that can be disastrous for a homebuilder.

Let's begin by taking a look at what goes on in a customer's mind when a purchase as large as a home is under consideration. It's essential to consider a customer's mental processes, because that's where the buying decision is made. Salespeople must influence a customer's thinking if a sale is to be made.

Basically, when a prospect visits a model home he is mentally weighing two things:

  1. What do I have to pay?

  2. What value do I get for my money?

It's that simple. A customer is simply asking -- is the home worth the asking price?

Buyers want to measure the asking price against their own perception of value. If, in the 'customer's mind', price outweighs value, there's no way the salesperson can close the sale because the customer doesn't think the price justifies the perceived value. If, in a 'customer's mind', price and value are equal, the salesperson may get the sale. If, however, value outweighs price in the 'customer's mind', that's when a salesperson can close the sale.

The important point to note is the key words 'in the customer's mind.' This point is critical because that's where the value is. Value is nothing more than a measure of how badly a customer wants something. It is a mental thing. That's why salespeople are able to influence it. Prospects are looking for an outcome -- a result. If salespeople can give it to them, then salespeople stand a pretty good chance to make a sale.

A basic principle of any salesperson's job is to get the value side to outweigh the price side. This brings about one of the great misfortunes in home selling. The vast majority of salespeople and homebuilders are suffering lower sales for one big reason -- they're simply selling product benefits the wrong way. It truly is a missed opportunity; one that, when taken, leads to more sales and income.

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