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I use the term “commodity” frequently in this sales blog. Let’s get on the same page regarding its meaning in a sales context. First of all, it usually has a negative connotation. It implies that our products and services:

• Have few, if any, value added services.
• Are easily and commonly found.
• Are inexpensive.
• Are not unique or “brandable.”
• Are unsophisticated and simple.

“Commodity selling is a frame of mind…not a product or service.”

Commodity Selling Perspective
Selling a commodity product or service can easily deteriorate to price only…if we let it. If we’re not careful, we could turn selling nuclear power plants into commodity sales. However, we can also make corn (the ultimate commodity item) into something much more than just a commodity in the eyes of our customers.

Regardless of what we’re selling, we can control whether we create a commodity-selling situation, or not.

The Wrong Kind of Sales Tips
The following is the toxic formula that will result in your being a commodity salesperson regardless of what you’re selling (i.e., avoid all of these):

• Always talk about price first.
• Never discuss the added services your company provides.
• Mention your competitors frequently.
• Avoid all decision makers and spend all of your time with information gatherers or recommenders.
• Never add-on-sell, up-sell or cross-sell. Never let the customer know you have a breadth of products and services.
• Offer to quote prices on anything and everything, even if the customer doesn’t ask.
• Provide the customer every brochure, flyer, reference sheet and catalog your company has ever produced. Help them kick-start their paper recycling program.

The Right Kind of Sales Tips
If you use the following recipe when selling, you can lift yourself out of the commodity classification. This works whether you’re selling wheat germ (whatever that is), buckwheat or space shuttles.

Commodity selling is a frame of mind…not a product or service.

• Your first priority is to educate your customers about the added value you and your company make available to them. Negotiate price, etc. only after that has been done.
• Talk about yourself and your company. Avoid discussions about your competitors. You’re not there to talk about them.
• Find and get to the decision makers who will appreciate your added value. Decision makers understand ROI (Return on Investment) much better than recommenders and information gatherers.
• Look like the multi-line company you are by teaching your customers what you have to offer.
• Quote prices only when customers are serious about, and capable of, buying.
• God gave you words to sell with; their power can be Biblical. Use them to sell; marketing collateral alone doesn’t sell anything.

Sales Blog Epilogue
You can decide to rise above a commodity salesperson regardless of what you sell and you can decide to do it right now. Powerful stuff.

Further reading:

• Collateral Material, Sales Brochures, What a waste!
• A Great Selling Tip when Selling Commodities
• Sales Advice: Take this test to see if you have become an order taker.
• Transactional Selling Versus Solution Selling

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Tags: collateral, cross-selling, negotiation, pricing

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