Distinguishing your dealership with solutions selling

Office World News, May/Jun 2003 by Stimmel, A Craig

With computerized Matrix Pricing and ERP programs to help companies manage their product mix, many dealers may not think that it is necessary to fine-tune their product mix. Dealers often rely too heavily on matrix pricing reports which illustrate that commodity or "A" category products represent the highest volume of sales. Dealers who accept the "status quo" and make little effort to educate their customers about the "right" product for the specific need can find themselves surrendering their ability to distinguish themselves from the competition and slipping in their ability to create a unique sales proposition (USP) with reasons why customers should buy one product over another.

Instead of letting the computer decide, many dealers find that taking a pro-active, focused approach to selling solutions, with a focus on offering the "right" product, can increase not only the dealer's bottom line, but also their repeat business and customer satisfaction.

* A PRODUCT SAMPLING

Take, for example, that three-ring binders come in a variety of different qualities. Inexpensive 1-inch binders have market prices from $.89 cents to $2.99 depending on the reseller, his/her buying group/wholesale affiliation and respective buying power. How these binders hold up depends on their use. If your customer uses them for the occasional reference, they will suffice. But, if what your customer really needs is a record retention system, these binders will quickly reach a point where they don't connect, they'll develop cracks and the whole thing will fall apart. Inexpensive binders are just not designed for heavy use.

So, is the inexpensive binder always the right one for your customers? If you take the time to find out what your customer intends on using a product for, you may find that the commodity product which represents the highest volume of sales is not the answer.

* SELLING SOLUTIONS

What's a better answer? To sell the customer the right binder to do the job. Yes, there are $.89 cent 1-inch binders. But there are also $15.00 1-inch binders. What's the difference? Heavy weight construction, piano hinges, durability, heavy weight vinyl and more. Repeated, heavy-use of this high quality binder will not result in the binder falling apart. Instead, it will last for years and make the added investment a good one. This is because setting up a binder always includes LABOR which is far more expensive than even the highest costing binder. If you continually have to replace an inexpensive binder, that cost-of-labor must be factored into the overall cost of the product. This will achieve a true price-cost ratio.

The same thing can be said for many other office products where selling the right product to meet the customer's needs can help raise both the dollar value Ef or the sale and make a "hero" out of the business development professional in the eyes of the customer. Yes, you can even sell better quality pencils vs. economy grade if you spend a moment explaining the differences. Instead of simply taking orders, there are many higher priced similar products that can be easily sold, if you know what to look for and the right questions to ask.

To only stock the low-end of the product spectrum may not be doing your company justice. It makes you the same as everyone else and provides little benefit to the customer. By combining product knowledge together with solutions selling, territory management and organizational skills, being able to distinguish yourself from the competition can help provide solid reasons for prospective customers to become customers.

Craig Stimmel, MBA, Executive VP, North American Marketing Services is a Certified Management Consultant, Manufacturers' Agent and Master Rep with offices both in North America (Woburn, MA) and Europe (Strasbourg, France) who has served the Global Business Products Industry since 1971. Learn more about Craig by visiting his website:

www.importmarketingservices.com