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How can I sell when I'm not the lowest price?
Written by: Dave Kahle
Continued from page 2...

Most people put their mark around 25. The risk in this situation is a lifetime of consequences for at least four people - the mother, child and adoptive parents. That's a very high risk.

Compare the X's for the two different decisions, and you'll conclude that different decisions carry with them differing degrees of risk.

Now, let's apply this concept to your customers. Remember that every time you ask your prospects to say yes to you, they are accepting some risk. And each of those decisions you ask of them carries with it a different degree of risk.

Imagine your typical customer. Then think of the typical offer or decision you ask of that person. For example, take one of your newer products. Imagine you are presenting it to your customer for the first time. Now, put yourself in his shoes, and see the situation through his eyes. On the 0 - 25 scale, how much risk does your customer accept when he says "yes" to you?

For an easy way of calculating it, just ask yourself what happens to that individual if you, or your company, messes up.

If your customer buys that product and it doesn't do what you claim it will, what trouble will that make for your customer? What consequences will he/she pay? What is the risk?

And don't say that there is no risk because you'll take care of any problem that might develop. You may think that, but your customer doesn't know that. And remember, you're trying to see this from your customer's point of view, not yours. The amount of risk is what your customer perceives it to be.

I had a great example of the role of risk in sales several years ago. A young man approached me to help his company with their sales efforts. They were selling a product that was, at the time, a real state-of-the-art breakthrough. The company designed computerized controls that were retrofitted on production equipment. As a result of the use of these controls, the savings in energy consumption would pay for the cost of the equipment in less than a year.


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