Get The Edge To Sell Commodities

Many in the lumber and building products industry sell exactly the same product as their competitors. The key, even when selling commodities, is to create a perceived value that differentiates yourself from the competition, according to Dave Kahle, consultant, trainer and author of The Six-Hat Salesperson.

To put it simply, says Kahle, you must detail and communicate the important ways your offering differs from your competitors'. Granted, your product may be identical, but everything else about your offering may be different. There is a whole lot more to a decision to buy than just the product or the price.

Your first job is to identify those differences.

(l) Think about everything associated with a product when the customer purchases it. Create several categories, and label columns on a piece of paper with the names of those categories. For instance, label the first column "Company," the second "Salesperson," the third "Terms," and so on. Make a column for every imaginable aspect of the offerins.

(2) Under each column, list all the ways that your offering differs from the competition's offerings. For example, your firm may be locally owned, while your competitor is a branch of a national company. Or you may be physically closer to the customer, or larger, smaller, newer, older, etc.

(3) You now should have listed dozens of specific, detailed differences-far too many than can easily be communicated to the customer. So, the next step is to pick out the differences that are most important to your customer. Critically analyze the list, and eliminate items that don't impact their jobs or make a difference to them. You should be left with a handful of items.

(4) Translate each remaining item into a statement of benefit to the customer. If your company is local, while your competitor ships from 50 miles away, Kahle suggests something like: "As opposed to some other suppliers, we're just 15 minutes from your plant. This means that you can get quick delivery of emergency shipments, as well as rapid response to any problem that might develop. So, you'll have potentially less downtime in the plant, and ofcourse, less stress and pressure on you."

Now that you've professionally prepared, you are ready to communicate those differences to your customer. Point them out in an organized, persuasive presentation. Prepare a sell sheet with each of the differences noted as a bullet. Next to each bullet, write a few comments that capsulize the benefit statements you prepared. Then, meet with your customer, lay the sheet down in front of him/her, and walk them through it, explaining each point as you go.

"Treat it as you would any other well-done presentation," advises Kahle. "Be sensitive to your customer's reaction, and ask for feedback as you work down through the list. Say, 'How does that sound?' or 'Does that make sense to you?' and emphasize those things that seem to be more important to your customer. Then, leave that sheet with your customer."

From the customer's point of view, if your offering is just like the competitor's, the customer is justified in buying from the cheaper source. However, if there is any difference between your offering and your competitor's, then the responsibility is entirely yours to show the customer that difference. Follow the process described above, and you should have far fewer customers treating you like a commodity.