By Ahmed al-Akber/Dubai
Let’s face it, selling a commodity has its challenges. Your customers always want the lowest price, in which case it’s even more challenging to deliver the product with decent service while maintaining some type of decent margin. Everyone knows that discounting is manipulation and not sustainable in the long run.
What if your product didn’t need to be sold as a commodity, and that you could actually increase sales very quickly without the need to keep discounting. Here are a few things to keep in mind:
1) Don’t sell a “commodity”. “Commodities” are products that have absolutely no differentiation from one another. In this circumstance, customers are bound to focus on price, because there is no product that sets itself apart from the rest. The cheapest deal will win. You don’t want to compete there, so stop calling what you sell a “commodity”!
2) Stop discounting. When a customer asks for a discount, most suppliers automatically say yes. And that’s when their margins drop like a brick. Ask what she’s really looking for. Is there a particular service that you can offer, such as quicker delivery, longer payment terms, or additional services?
3) Focus on the problems you solve. What are your customer’s biggest issues? All you have to do is ask them. Do they have problems that you can solve? Armed with that knowledge, you can position your products in a completely different category than your competitors. One that your customers will be willing to pay more for. We all are paid to solve problems at the end of the day! Imagine your customer tells you that they are having issues with their own customers not appreciating the quality of their products. Could you offer a new type of product or service that would help? Speaking about those issues to customers will resonate and you’ll have their attention.
4) Focus on the value you provide. If you took those customer issues and turned them around, what would you see? How would your customer’s businesses be better off in terms of the money they make, the service they provide to their customers, or with their own expenses. Similarly to the previous point, if you speak about that value that your customers are looking for, they will take notice. And its then that you offer your now differentiated product to them as something that will provide the value they are looking for.
- Ahmed al-Akber is the managing director of ACK Solutions, a firm that helps companies to improve their marketing and sales results by offering more effective ways attracting customers and significantly better products and services. Ahmed has worked internationally in marketing, sales, and strategic planning at companies such as the Coca-Cola Company, Philip Morris International and Dell. Questions or comments can be sent to Ahmed on [email protected]
