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Solution Selling




Stop competing on price.
Start competing with value.

                              By Dan Livengood with
Solution Selling Stop competing on price. Start competing with value.



The solution selling concept has grown considerably as key components of
professional selling evolve. Over the past few decades, solution selling has
become more broadly defined to include dimensions of: ‘sales process to reach a
solution,’ ‘competitive selling’ or ‘value selling’ as well as ‘consultative selling’ and
‘complex or comprehensive selling’ which all focus on a team aspect of sales.

However, solution selling in the promotional products industry has also been
refined into “value proposition selling.” In other words, what products, and/or
services you offer makes you uniquely different from the competition. This school of
thought also includes a higher perceived value to the customer by way of offering a
great marketing and sales arsenal coupled with industry credibility.

Unfortunately, many professionals in the promotional products industry embrace a
commodity or ‘product only’ frame-of-mind long before they approach their client
or prospective customer. It’s simply not enough to have a great idea or a ‘cute’
product. This type of one-dimensional selling fosters commodity selling where price
wars and bidding frenzies follow immediately.

Successful sales professionals agree, today’s solution selling addresses
more brand-building and marketing reinforcement opportunities, rather than
implementing a reactive strategy to an existing problem, or simply selling products
as a commodity. The result is better solutions, satisfied clients and more profitable
business relationships.

Knowing the Difference
Even though imprinted products reinforce the client’s message where the item
literally becomes a mobile billboard, the item is simply ineffective if a consultative
approach is not used, and the client’s core objective is not considered. Buyers are
already skeptical or guarded because they are under pressure to get the strongest
return from their investment. The product itself simply is not justification to spend.

The following chart illustrates key contrasts between solution sell and commodity
selling or non-solution selling:

 Component                             Solution selling                   Non-solution selling
 Website                               Building credibility as an         Product descriptions
                                       industry expert
 Products and collateral               White papers, case studies,        Product spec sheets/
                                       ROI data                           brochures
 Sales presentations                   Short, focusing on the client      Lengthy product overviews
                                       as well demonstrating a
                                       strong value proposition
 Selling style                         Ask questions and listen           Pitch and present
 Proposals                             Unique and custom                  Boilerplate or canned
 Sales cycle length                    Longer                             Shorter

Chart Source: market-partners.com




Copyright ©2011 Newton Manufacturing Company. All rights reserved.             2
Solution Selling Stop competing on price. Start competing with value.



Solution selling consultants must ask the right questions to develop a full
understanding of the client’s market, while establishing credibility and trust. That is
why face-to-face meetings are so important. It’s difficult to trust a sensationalistic
Internet resource that promises the best price but lacks accountability after the sale.

Considering the technology explosion of the Internet and online sales, many
clients try to self-diagnose, giving them a sense of a placebo marketing expertise.
What they are really seeing on the Internet is a myriad of commodity brokers and
suppliers – all fighting for marketplace positioning for the sake of the lowest price.
                                                                                                                      “I’ve always preferred the
They often risk obtaining an inferior product and the buying experience is less                                       solution selling concept
than satisfactory.                                                                                                    to differentiate me from
                                                                                                                      my competitors. I’ve had
Trust is built once the buyer feels the consultant understands their desires, fears,                                  minimal success with
pains and anxieties, etc. Credibility is often established when the seller has                                        commodity selling for a
some form of proven data, ROI or case study to reinforce his or her intent. Again,                                    very important reason:
revealing Internet buying myths is a necessary burden for the consultant.                                             Being a price-only
                                                                                                                      seller fosters short-term
                                                                                                                      relationships; it adds to
Delivering Value                                                                                                      a higher attrition rate
When using the solution selling approach to offer promotional products to your                                        because anyone can buy
client, it’s best to begin with their core objective, and then work backward. The                                     products via Internet.
                                                                                                                      However, not everyone
process starts by asking the right consultative questions to help determine what
                                                                                                                      can provide results-driven
promotional products and services can help reach that core objective. All of this                                     campaigns. Solution
should be accomplished with a ‘servant’s attitude,’ making it all about the client –                                  selling is a long-term
never about the consultant.                                                                                           relationship builder in
                                                                                                                      that it focuses on your
In his Selling Dynamics model, consultant Phil Kash explains that a successful                                        clients objectives (not
solution seller is really not a ‘salesperson’ per se. To earn a credible and trusted                                  your product), thus
business relationship, the consultant must also:                                                                      establishing higher
                                                                                                                      credibility and trust.”
       •   Speak the language of the customer
                                                                                                                      Drew Argotsinger, owner
       •   Be yourself and believe in yourself – never be contrived or scripted                                       of BlueFish Promotional
       •   Demonstrate that you know their business                                                                   Marketing, in association
       •   Develop your own value proposition                                                                         with Newton
       •   Discern between a clients’s wants and needs, and communicate accordingly

With a strong value-added selling concept, the sales consultant will enlarge the
definition of value. Price essentially is what buyers pay; value is what they receive.
That’s why it’s so important to get the buyer to focus on the objective and desired
outcome, first. Buyers care more about three dimensions of the sell:

           You - People buy from who they know, like and trust (continued growth and
           personal value proposition differentiators are also strong pillars in market
           positioning).

           Your Company - Does your organization support the buyer’s needs now
           and in the near future? Are they qualified and credible?

           Product Selection - Is the item a ‘trigger’ to initiate a call-to-action? Is it
           a conduit to drive home or carry a message? Will it last long and be seen
           constantly by the target audience?




Copyright ©2011 Newton Manufacturing Company. All rights reserved.             3
Solution Selling Stop competing on price. Start competing with value.



To increase your value as a solution-selling consultant, it is best to invest in
your own personal research and development for continued growth. You are the
product over which you have the most control. By doing so will help build your core
competencies that help differentiate you from other sales people.

Where to Start
It is paramount to conduct sufficient research to help understand how your
prospective client goes to market before walking in to your very first meeting.
Consultants are judged by what they learn about their client’s problems, concerns
and decision processes. To begin, ask yourself the following questions:

       • Who are they and how do they go to market?
       • Who is their competition?
       • What is their primary revenue resource?
       • What primary channels of advertising do they use?
       • What trends are affecting them now and possibly in the future?
       • What industry case studies or historical data can you use for assistance
         should they choose you as a marketing arm?
       • What charities or civic organizations are they involved in?

Answers to those questions should provide a thorough overview of their business
situation. With this understanding, it’s time to pick up the phone, but before the call,
ask yourself the following questions:

       •   What do I want to accomplish with this call?
       •   What do I want to ask the buyer?
       •   What do I want to tell the buyer?
       •   What collateral pieces do I need?
       •   What obstacles do I anticipate?
       •   What action do I want from the client at the end of the call?

Consulting Your Clients
The solution selling consultative model is a process proven to delve deeper into
the buyer’s psyche. Likewise, practicing the solution selling consultative process
in each of the proceeding five stages helps engrain stronger competencies in the
consultative seller. The following process features segments from the book Value-
Added Selling by Tom Reilly, and clarification points, shown in parenthesis, from
business consultant Jim Immel:

1. Opening stage (have a brief or elevator speech ready if time is short, and be
   prepared to consolidate and adjust)

      • Introductions and pleasantries (relative to time allowed)
      • State call purpose
      • Ask for permission to probe (make the conversation about them, never about
        what you have to offer)

2. Needs analysis stage (listen carefully before asking)

      • Ask situational or contingency questions (from general to specific)




Copyright ©2011 Newton Manufacturing Company. All rights reserved.             4
Solution Selling Stop competing on price. Start competing with value.



      • Ask competitive questions (resist features and benefits comparison, as it
        leads to commodity brokering)
      • Ask projective questions
      • Summarize needs and help them take ownership of goals and objectives

3. Presentation stage

      • Ask involvement and mental ownership questions prefacing “ what if you” or
        “could you imagine if” statements
      • Offer your value proposition, including proof sources, ROI and case studies
      • Always adjust to the buyer’s style
                                                                                                                      “Sell your client on taking
                                                                                                                      ownership of their goals
4. Commitment or call-to-action stage
                                                                                                                      and challenges. After they
                                                                                                                      OWN the challenges,
      • Ask opinion questions                                                                                         then help the client
      • Ask for commitment to action (only after establishing value and buyer                                         explore for solutions.”
        accountability)
      • Be prepared to defend your value proposition (but don’t push,instead, pull                                    Jim Immel, consultant
        them in)                                                                                                      and President, Immel
                                                                                                                      &Associates, Inc.
5. Measurement and follow-up

      • Pay attention to changing trends and adjust and measure accordingly
      • Always follow-up, but be respectful of your client’s schedule

Networking plus Credibility = Exponential Growth
Credibility and validity are likely when cultivated relationships and superior
customer service are a prelude to these valuable referrals. When clients are
satisfied, they tell their colleagues, who tell other colleagues, thus the multiplier
effect takes place. However, poor customer relations/service and bridge-burning
has a similar effect – but in the opposite direction, driving a reputable business
backwards.

The business world has benefited in many ways from the social networking boom,
including powerful tools to obtain referrals. These breakthroughs are paramount,
as it enhances the ‘six degrees of separation’ effect, which directly benefits the
solution seller. The more people in which to interact with, the more networking
opportunities becoming available.

Why Consultants Don’t Solution Sell
Why don’t more sales professionals embrace a solution selling approach? The
answer is simple: fear and intimidation. They are afraid of losing the order if they
feel they might be charging too much or seem greedy, so they often discount
product right up front and not give themselves credit for their ‘above and beyond’
services, which is the profitability of solution selling.

Another common belief is that the salesperson needs to follow a difficult dialogue
or script, as solution selling is believed to be more comprehensive than their selling
style. True, solution selling has a longer selling cycle simply because there is more
listening and probing taking place.




Copyright ©2011 Newton Manufacturing Company. All rights reserved.             5
Solution Selling Stop competing on price. Start competing with value.



Conclusion
What’s the true advantage to solution selling? The consultant is more likely to add
profitability and brand positioning for the client, thus justifying the buyer to allow
you to sell deeper into their organization. In addition, the buyer is quicker to refer
the sales consultant who helped make them the hero in their organization. In short,
there are far more success stories and customer loyalty from the solution selling
process than using commodity selling. Many clients don’t mind paying a little more
- providing there is sufficient ROI and justification for doing so.


Further Reading
The New Solution Selling, Keith Eades
Value-Added Selling, Tom Reilly
Secrets of Question Based Selling, Thomas A. Freese

About Dan
Dan Livengood serves as the Senior Sales Manger of the Western Region for
Newton Mfg, a top-40 promotional products distributor. He has 20 years of creative
agency and promotional products experience. He’s won numerous creative and
promotional awards including recently:

      • 2011 Golden Pyramid Award in the Tutorial Category for developing a Home
        Health Care Visitation Program, featuring an array of educational products,
        including a custom baby calendar.
      • 2010 Golden Pyramid Award Consumer Products Category for creating a
        custom board game for the Iowa State Fair. (The game also captured the
        Silver 2010 Davey Award from the International Academy of Visual Arts).

Dan has developed several shadowing and mentoring programs for students
interested in advertising and marketing. In his spare time he is a cartoonist for
Creating Together magazine, and enjoys outdoor activities and emceeing special
events. Dan and his wife, LeAnn, have one son, Adam, who is a social psychology
graduate student at University of Northern Iowa. They reside in Newton, IA.


About Newton Manufacturing
Newton Manufacturing Company is an employee-owned promotional advertising
distributor specializing in innovative advertising, recognition and performance
solutions. For those promotional consultants that embrace or would like to
embrance a solution selling approach, we offer an array of support services and                                       Contact Us:
exclusive programs to help grow their business. We invite you to take a minute to                                     Newton Manufacturing
see how we deliver on our promise of “Way More Than You Expected” by visiting                                         1123 1st Ave. East
us at www.newtonpartner.com.                                                                                          Newton, IA 50208

                                                                                                                      641-792-4121
                                                                                                                      www.newtonmfg.com

                                                                                                                      Follow us:
                                                                                                                      twitter.com/NewtonMfg
                                                                                                                      facebook.com/NewtonMfg




Copyright ©2011 Newton Manufacturing Company. All rights reserved.             6

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Solution Selling

  • 1. Solution Selling Stop competing on price. Start competing with value. By Dan Livengood with
  • 2. Solution Selling Stop competing on price. Start competing with value. The solution selling concept has grown considerably as key components of professional selling evolve. Over the past few decades, solution selling has become more broadly defined to include dimensions of: ‘sales process to reach a solution,’ ‘competitive selling’ or ‘value selling’ as well as ‘consultative selling’ and ‘complex or comprehensive selling’ which all focus on a team aspect of sales. However, solution selling in the promotional products industry has also been refined into “value proposition selling.” In other words, what products, and/or services you offer makes you uniquely different from the competition. This school of thought also includes a higher perceived value to the customer by way of offering a great marketing and sales arsenal coupled with industry credibility. Unfortunately, many professionals in the promotional products industry embrace a commodity or ‘product only’ frame-of-mind long before they approach their client or prospective customer. It’s simply not enough to have a great idea or a ‘cute’ product. This type of one-dimensional selling fosters commodity selling where price wars and bidding frenzies follow immediately. Successful sales professionals agree, today’s solution selling addresses more brand-building and marketing reinforcement opportunities, rather than implementing a reactive strategy to an existing problem, or simply selling products as a commodity. The result is better solutions, satisfied clients and more profitable business relationships. Knowing the Difference Even though imprinted products reinforce the client’s message where the item literally becomes a mobile billboard, the item is simply ineffective if a consultative approach is not used, and the client’s core objective is not considered. Buyers are already skeptical or guarded because they are under pressure to get the strongest return from their investment. The product itself simply is not justification to spend. The following chart illustrates key contrasts between solution sell and commodity selling or non-solution selling: Component Solution selling Non-solution selling Website Building credibility as an Product descriptions industry expert Products and collateral White papers, case studies, Product spec sheets/ ROI data brochures Sales presentations Short, focusing on the client Lengthy product overviews as well demonstrating a strong value proposition Selling style Ask questions and listen Pitch and present Proposals Unique and custom Boilerplate or canned Sales cycle length Longer Shorter Chart Source: market-partners.com Copyright ©2011 Newton Manufacturing Company. All rights reserved. 2
  • 3. Solution Selling Stop competing on price. Start competing with value. Solution selling consultants must ask the right questions to develop a full understanding of the client’s market, while establishing credibility and trust. That is why face-to-face meetings are so important. It’s difficult to trust a sensationalistic Internet resource that promises the best price but lacks accountability after the sale. Considering the technology explosion of the Internet and online sales, many clients try to self-diagnose, giving them a sense of a placebo marketing expertise. What they are really seeing on the Internet is a myriad of commodity brokers and suppliers – all fighting for marketplace positioning for the sake of the lowest price. “I’ve always preferred the They often risk obtaining an inferior product and the buying experience is less solution selling concept than satisfactory. to differentiate me from my competitors. I’ve had Trust is built once the buyer feels the consultant understands their desires, fears, minimal success with pains and anxieties, etc. Credibility is often established when the seller has commodity selling for a some form of proven data, ROI or case study to reinforce his or her intent. Again, very important reason: revealing Internet buying myths is a necessary burden for the consultant. Being a price-only seller fosters short-term relationships; it adds to Delivering Value a higher attrition rate When using the solution selling approach to offer promotional products to your because anyone can buy client, it’s best to begin with their core objective, and then work backward. The products via Internet. However, not everyone process starts by asking the right consultative questions to help determine what can provide results-driven promotional products and services can help reach that core objective. All of this campaigns. Solution should be accomplished with a ‘servant’s attitude,’ making it all about the client – selling is a long-term never about the consultant. relationship builder in that it focuses on your In his Selling Dynamics model, consultant Phil Kash explains that a successful clients objectives (not solution seller is really not a ‘salesperson’ per se. To earn a credible and trusted your product), thus business relationship, the consultant must also: establishing higher credibility and trust.” • Speak the language of the customer Drew Argotsinger, owner • Be yourself and believe in yourself – never be contrived or scripted of BlueFish Promotional • Demonstrate that you know their business Marketing, in association • Develop your own value proposition with Newton • Discern between a clients’s wants and needs, and communicate accordingly With a strong value-added selling concept, the sales consultant will enlarge the definition of value. Price essentially is what buyers pay; value is what they receive. That’s why it’s so important to get the buyer to focus on the objective and desired outcome, first. Buyers care more about three dimensions of the sell: You - People buy from who they know, like and trust (continued growth and personal value proposition differentiators are also strong pillars in market positioning). Your Company - Does your organization support the buyer’s needs now and in the near future? Are they qualified and credible? Product Selection - Is the item a ‘trigger’ to initiate a call-to-action? Is it a conduit to drive home or carry a message? Will it last long and be seen constantly by the target audience? Copyright ©2011 Newton Manufacturing Company. All rights reserved. 3
  • 4. Solution Selling Stop competing on price. Start competing with value. To increase your value as a solution-selling consultant, it is best to invest in your own personal research and development for continued growth. You are the product over which you have the most control. By doing so will help build your core competencies that help differentiate you from other sales people. Where to Start It is paramount to conduct sufficient research to help understand how your prospective client goes to market before walking in to your very first meeting. Consultants are judged by what they learn about their client’s problems, concerns and decision processes. To begin, ask yourself the following questions: • Who are they and how do they go to market? • Who is their competition? • What is their primary revenue resource? • What primary channels of advertising do they use? • What trends are affecting them now and possibly in the future? • What industry case studies or historical data can you use for assistance should they choose you as a marketing arm? • What charities or civic organizations are they involved in? Answers to those questions should provide a thorough overview of their business situation. With this understanding, it’s time to pick up the phone, but before the call, ask yourself the following questions: • What do I want to accomplish with this call? • What do I want to ask the buyer? • What do I want to tell the buyer? • What collateral pieces do I need? • What obstacles do I anticipate? • What action do I want from the client at the end of the call? Consulting Your Clients The solution selling consultative model is a process proven to delve deeper into the buyer’s psyche. Likewise, practicing the solution selling consultative process in each of the proceeding five stages helps engrain stronger competencies in the consultative seller. The following process features segments from the book Value- Added Selling by Tom Reilly, and clarification points, shown in parenthesis, from business consultant Jim Immel: 1. Opening stage (have a brief or elevator speech ready if time is short, and be prepared to consolidate and adjust) • Introductions and pleasantries (relative to time allowed) • State call purpose • Ask for permission to probe (make the conversation about them, never about what you have to offer) 2. Needs analysis stage (listen carefully before asking) • Ask situational or contingency questions (from general to specific) Copyright ©2011 Newton Manufacturing Company. All rights reserved. 4
  • 5. Solution Selling Stop competing on price. Start competing with value. • Ask competitive questions (resist features and benefits comparison, as it leads to commodity brokering) • Ask projective questions • Summarize needs and help them take ownership of goals and objectives 3. Presentation stage • Ask involvement and mental ownership questions prefacing “ what if you” or “could you imagine if” statements • Offer your value proposition, including proof sources, ROI and case studies • Always adjust to the buyer’s style “Sell your client on taking ownership of their goals 4. Commitment or call-to-action stage and challenges. After they OWN the challenges, • Ask opinion questions then help the client • Ask for commitment to action (only after establishing value and buyer explore for solutions.” accountability) • Be prepared to defend your value proposition (but don’t push,instead, pull Jim Immel, consultant them in) and President, Immel &Associates, Inc. 5. Measurement and follow-up • Pay attention to changing trends and adjust and measure accordingly • Always follow-up, but be respectful of your client’s schedule Networking plus Credibility = Exponential Growth Credibility and validity are likely when cultivated relationships and superior customer service are a prelude to these valuable referrals. When clients are satisfied, they tell their colleagues, who tell other colleagues, thus the multiplier effect takes place. However, poor customer relations/service and bridge-burning has a similar effect – but in the opposite direction, driving a reputable business backwards. The business world has benefited in many ways from the social networking boom, including powerful tools to obtain referrals. These breakthroughs are paramount, as it enhances the ‘six degrees of separation’ effect, which directly benefits the solution seller. The more people in which to interact with, the more networking opportunities becoming available. Why Consultants Don’t Solution Sell Why don’t more sales professionals embrace a solution selling approach? The answer is simple: fear and intimidation. They are afraid of losing the order if they feel they might be charging too much or seem greedy, so they often discount product right up front and not give themselves credit for their ‘above and beyond’ services, which is the profitability of solution selling. Another common belief is that the salesperson needs to follow a difficult dialogue or script, as solution selling is believed to be more comprehensive than their selling style. True, solution selling has a longer selling cycle simply because there is more listening and probing taking place. Copyright ©2011 Newton Manufacturing Company. All rights reserved. 5
  • 6. Solution Selling Stop competing on price. Start competing with value. Conclusion What’s the true advantage to solution selling? The consultant is more likely to add profitability and brand positioning for the client, thus justifying the buyer to allow you to sell deeper into their organization. In addition, the buyer is quicker to refer the sales consultant who helped make them the hero in their organization. In short, there are far more success stories and customer loyalty from the solution selling process than using commodity selling. Many clients don’t mind paying a little more - providing there is sufficient ROI and justification for doing so. Further Reading The New Solution Selling, Keith Eades Value-Added Selling, Tom Reilly Secrets of Question Based Selling, Thomas A. Freese About Dan Dan Livengood serves as the Senior Sales Manger of the Western Region for Newton Mfg, a top-40 promotional products distributor. He has 20 years of creative agency and promotional products experience. He’s won numerous creative and promotional awards including recently: • 2011 Golden Pyramid Award in the Tutorial Category for developing a Home Health Care Visitation Program, featuring an array of educational products, including a custom baby calendar. • 2010 Golden Pyramid Award Consumer Products Category for creating a custom board game for the Iowa State Fair. (The game also captured the Silver 2010 Davey Award from the International Academy of Visual Arts). Dan has developed several shadowing and mentoring programs for students interested in advertising and marketing. In his spare time he is a cartoonist for Creating Together magazine, and enjoys outdoor activities and emceeing special events. Dan and his wife, LeAnn, have one son, Adam, who is a social psychology graduate student at University of Northern Iowa. They reside in Newton, IA. About Newton Manufacturing Newton Manufacturing Company is an employee-owned promotional advertising distributor specializing in innovative advertising, recognition and performance solutions. For those promotional consultants that embrace or would like to embrance a solution selling approach, we offer an array of support services and Contact Us: exclusive programs to help grow their business. We invite you to take a minute to Newton Manufacturing see how we deliver on our promise of “Way More Than You Expected” by visiting 1123 1st Ave. East us at www.newtonpartner.com. Newton, IA 50208 641-792-4121 www.newtonmfg.com Follow us: twitter.com/NewtonMfg facebook.com/NewtonMfg Copyright ©2011 Newton Manufacturing Company. All rights reserved. 6