Everyone wants to increase the value of their B2B deals. But when only a miniscule number of opportunities actually turn into deals, you may think that you can’t afford to be choosy. That’s the talk of a company that is languishing. To thrive you need to think bigger.
This guide is going to show you how to use what you have to increase the value of your B2B deals.
Selling to the Right People
It starts with selling to the right people in the first place. If, for instance, you are only targeting small businesses that have only been in operation for six months, you will hit a ceiling on your revenue per customer. Challenge yourself to improve the quality of your leads, which, as it turns out, is what 70% of B2B businesses want.
Target larger and more lucrative companies, also known as "going upmarket." Don’t be intimidated by them. The worst thing they can say is no, and then you simply move on to the next one. Remember that if you are only targeting the little fish there’s only so much flesh you can extract.
Create an Upsell
The perfect sales proposal doesn’t just take into account the original product being sold. It considers later potential upsells. This thought process should be reflected in your high-converting landing pages and every other interaction you have with each lead. You always have to be thinking long-term.
Once you find a product customers love, you can easily create upsells through selling add-ons and other services that complement what they already have. Not only will you be extracting more money but your customers will be extracting more value from these transactions.
What types of upsells can you offer?
There are a few and they can all be implemented at various stages. Use predictive analytics to get a feel for which products are likely to go down a winner. Some options include coaching, accelerating results, full-service solutions, and exclusive content.
This is an area where you can really get creative.
Explain the Cost of Purchasing the Cheap Option
Sometimes you may think that the key to converting leads into clients is to offer a low-priced package. But many solutions are best used when the client's entire company is using it. When a handful of people use the product, the value of that product may be inadvertently diminished.
So how are you going to deal with this?
Be upfront about the opportunity they are missing by opting for the cheapest option. Most companies are not out to save money and are willing to spend more to get a better result.
Give the Option to Lock In Prices
Locking in prices for the long-term will make you more money in the long-term. Present your leads with this option. If they pay a little more now, they can have the price they are getting the product now for life. Warn customers that your prices rise significantly every year so this becomes a more attractive option.
Protecting them against price increases is helping them, while extracting more money.
Add Extras Not Discounts
It’s true that giving a customer a discount can close a deal, but this isn’t always the best way to extract the most value. Sometimes you have to go further than that. The way to do this is to insert some additional value. Add some extra features and programs not discounts. Focus on value not affordability.
It may just swing the deal in your favor without the need to apply a discount at all. Make sure these bells and whistles are valuable. People will see right through any half-baked ideas that you have come up with in order to close a deal.
Conclusion – The Debate Over Lower Prices
A race to the bottom through constantly discounting your products is a bad sign and is a waste of money. It indicates that you don’t value your products correctly. And that will turn away many potential leads. You are only going to attract the people who aren’t serious and just want to save money. If anything, this will reduce your B2B revenues.
Price happens to be one of the smallest priorities for B2B businesses, as study after study has demonstrated. This debate over lower prices is not really a debate at all because there’s only one right answer. Resist slashing prices to secure a deal and focus on increasing the value proposition on offer.
In your opinion, what is the best way to increase the value of your B2B deals?