Because of this customer value focus, value added salespeople are in business to make a difference, not just to make a deal. This follows a parallel belief that you achieve success by helping other people achieve higher levels of success. A fourth core belief is that you sell a bundled package solution—a three-dimensional solution: your product or service, your company, and yourself. Two major studies found that salespeople contribute at least one-third the value that customers receive.
The company and product contribute the balance. The same product from the same company from two different salespeople is two different solutions altogether. This three-dimensional view of the solution offers great hope for companies and their salespeople. If you sell the product only, you open the field to too many competitors. Companies bring value to the table with their facilities, depth of resources, commitment to the industry, management philosophy, support, and their people.
Salespeople add value with their problem solving skills, follow-up, accessibility, knowledge, ability to get things done, logistics support, and initiative. This is the value-added selling process.
What’s a Value-Add Deal?
It is a process of identifying viable opportunities, penetrating these accounts thoroughly, qualifying these opportunities, capturing the business, assuring buyer satisfaction, and retaining and growing the business. The latter activities differentiate value-added selling from traditional selling. In traditional selling, salespeople focus on offensive selling activities; i. In fact, there is a bad case of pipeline-itis in the United States.
Managers are so obsessed with finding new business and discovering new opportunities that they often ignore their existing customers. Defensive selling is at least half of value-added selling. They follow up. During this follow up they discover additional opportunities for business.
All Inclusive Holidays
For one-tenth the cost of acquiring new business, you can service an existing account and grow the business. Value added salespeople sell offensively and defensively. When the buyer purchases something, he wants smooth and painless transition. Commodities are products or services that the buyer believes are exactly the same, regardless of who's selling it.
These are usually inexpensive products that have been on the market for a very long time. For example, gasoline is a commodity, so someone looking to fill up his car's tank will normally go to the gas station with the lowest price. Some of these value items would include fast delivery, quick and easy replaceability, reduced fees, and so on.
You could also try grouping commodity products to make a customized package that will exactly fit your prospect's needs.
Tailor Made Holidays | Value Added Travel
Of course, if you can come up with a way to differentiate your product , that's the best approach of all. Inexpensive products that are new to the marketplace usually are easier to sell because they haven't reached the status of a commodity yet. Because the product is fairly cheap, prospects won't feel it's a huge risk to purchase these products. Value add-ons for new, inexpensive products often center on the concept of being trendy and an early adopter.
You can also offer value items related to easy setup and installation — for example, a professional installation and six months of tech support at no additional cost. And if you have investors, it should calculate the returns for them and incorporate any syndication fees for you. You can create this spreadsheet yourself or you can buy one. For some recommendations on a multifamily deal analyzer spreadsheet, see this BiggerPockets forum post.
Michael Blank is a leading authority on apartment building investing in the United States. This is great information! It is simple enough to follow as a newbie in the multifamily space, and also adds to the newbies toolkit for analyzing deals. The value-add deals give that savvy investor the leg up on other multifamily investors that invest in regular apartment deals because value-add deals show the ability to be multi-functional in that space. Thanks Michael, interesting break down to get away from Cap rates, etc.
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For me breaking down deals for myself and other investors loan pay down or amortization as you call it is often overlooked in the calculation. Notify me of follow-up comments by email.
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