Friday, May 23, 2008

Scott Ragsdale's - Black Gucci Loafer - Selling the Benefits and Brand Power

I was reading Scott Ragsdale’s blog, CEO of naseba, the entry on Black Gucci Loafer, on how to sell people on the benefits and make them buy a service or product at a premium. I am very impressed by the way he gives his sales pitch to motivate the sales team to sell more. Here is a small story from my experience to re-enforce the fact on what Scott has written.

In my previous job at one of the largest India IT MNCs, I was the marketing manager and I was responsible for launching a new Software Product in the SME market in India. India is a very price sensitive market and people are not ready to pay big amounts. However, if sold well on the concept and brand, people do buy it.

So after launching the product and doing marketing activities, I launched a special offer of 50% off on the initial price. Obviously, the price was marked up according to competitor’s price and there was an actual profit margin kept. In the first 2 weeks none of the sales guys sold it. They all thought it’s an expensive product and won’t sell.

I got pissed off and I asked my manager, that I am going to prove them wrong and sell it at a higher margin + I am going to get an annual maintenance contract (25% of the actual cost of product) also signed in a month’s time.

Within 1 week of scanning the market I found 2 potential opportunities and I went and pitched and showed the product demo and closed the deal much higher than the actual price and also sold the AMC for 25% of the product cost.

My simple pitch was that it is exclusive as the service provided is unmatchable and the convenience that the hospital (buying it) is much higher than any of the cheap competitor’s product. The brand name and the over all packaging along with the smooth sales pitch highlighting the benefits made me sell and I won the “Operation Market Storm – BDM of the Month”.

This is the power of branding, sales and individual’s ability all put together to build a strong sales organization.

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