Solution Selling

Solution Selling is the ideal title for describing what all sales people should be doing at all times. They should be asking questions with prospects or existing clients (which I see as prospects as well) that identify their most immediate problems and then the sales person presents a solution to their problem(s). In this environment you are not selling the lowest price. You are offering value to your prospect that they can see benefit from that actually impacts their bottom line. The impact can be either in savings or in additional revenue to their company.

A sales person should be proactive and constantly researching their prospects industry and business. Let's say for example your client's business is in merger consideration and if taken over by another company could cause you to lose the client to your competition because the other company has a larger say in the supplier decision making process. The proactive sales person would be working hard to do business with the businesses entertaining the merger. Perhaps you can even solve problems for these new clients that have nothing to do with what you are selling. If and when a merger does happen your name (and the company you represent) has a better chance of not only maintaining your existing client but also growing the business with this merger.

In addition, too often sales people bid on a "solution" and when the decision is delayed they get nervous and start offering a reduced price. Here is an excerpt from Sales Performance Blog post; "If The Economy Slows, How Should We Sell?" that states my point clearly:

"...what most salespeople do: they simply react by cutting price or offering other kinds of substantive concessions. Ironically, aggressive discounting at the end of the cycle can actually increase the perception of risk by customers. They may wonder, “Why did you quote me a higher price before? Is this now the best price? What kind of price could I get if I delay further?” This begins a death spiral of further delays, followed by additional discounts, until all profit margins are completely squeezed out — which is bad business for both the seller and the buyer."

In summary, Solutions Selling is presented on value not price. And is proactive not reactive.