FAQ: What's The Difference Between Commodity And Premium Sales?

Objective: Manipulating buyers to buy my stuff right now.

Simple, one size fits all items

Perceived as commodity

Very short sales cycle with one or two contacts

One or two decision-makers

Low risk

Every prospect must buy something... whatever it takes

Sellers are perceived as fungible vendors

Traditional sales techniques (Create the pain -> make it hurt -> overcome objections -> Close, close, close)

Price quote and comparison: "Can we have it for less?" "Is this your best price?"

Buying decisions are based on price

Salesperson's activity break-down

1. 5% Qualifying prospect
2. 15% Discovering needs
3. 35% Presenting solution to fill needs
4. 45% Overcoming objections and close, close, close

Outcome: Unstable, superior-subordinate transactional relationship between sceptical buyers and fungible vendors.

Objective: Discovering whether or not it makes sense for the buyer to change, and to change with me.

Complex, customised services

Perceived as premium

Long(ish) sales cycle with multiple contacts

Multiple decision-makers

High risk

Prospects select/deselect themselves to buy

Sellers are perceived as fiduciary advisors

Trust- and value-based integrated business development process.

Collaborative diagnosis, solution design and establishment of value and expected ROI

Buying decisions are based on fit and ROI

Salesperson's activity break-down

1. 10% Jointly discovering fit for collaboration
2. 40% Jointly diagnosing the buyer's current situation
3. 35% Jointly designing solution
4. 15% Jointly delivering solution

Outcome: Trust and respect based stable peer-level relationship between buyer and seller.