As you may be aware I have the honour of being one of the presenters at this year’s Sales Performance Summit, the event is both live, and being webcast live simultaneously to anyone with a web connection, even the folks on the International Space Station. What I found interesting is the number of people who are questioning the wisdom of charging for the simulcast, many of those questioning us are themselves sales pundits. They point to great content being made available on the web for free; or that the webcast will cut into our live attendance as people can participate from their office and save.
But here is the deal, I believe buyers are smarter than that, tire kickers maybe not. People know value, and they are willing to pay fair value for value received. Much of what is available for free on the web has a hidden cost, usually some form of product promotion or some other offer made during the presentation. Organizers of the Summit have committed to no selling, no hidden cost, just actionable insights for improving Performance Management.
There is nothing wrong with free webinars or web events, I have done them, and will do them in the future. Everyone knows what they are signing up for, and in my case, can’t speak for others, I always make sure that there are some specific take aways, both in terms of steps or things attendees can do to improve their sales, and or tools they can use over and above whatever product the sponsor may offer.
I remember working with a global brand, one specifically known for their selling prowess and power. As we got down to the short strokes, the buyer, a director of Sales Productivity, asked me to offer the initial session free, this would allow them to assess how to roll it out to other geographies, a show of good faith on my part. I pointed out that my mortgage holder offered no such sign of good faith for having my mortgage.
To make his point, he told me that another provider delivering a different program is doing a “pilot” for free. I pointed out that I do not set pricing for them, but I do for Renbor, and the price quoted was fair value. He asked why I would suppose that the other party would be willing to do that: “Maybe they want my business more and are willing to show this gesture?” I offered, “Maybe they know what their stuff was worth”. We went back and forth, and I finally said “OK, if I do it free, and when we get around to price and negotiations, and your team asks me how to handle it, I will tell them do what I do, give it away free. Or we can come to a mutually fair price point and I can share with them how to not get bullied on price” I am not sure what he like less, being called a bully or having to pay for the program.
There are three things you need to have in place to avoid the price or free trap:
- Understand real value you bring to the buyer’s objectives
- Be able to articulate, demonstrate and validate that you have helped other buyers achieve those objectives, and that they were able to attain a measurable ROI at your full price. This takes work and a deep understanding of the buyers objectives, their process of achieving those objectives, and barriers that have prevented them for getting there that you have successfully broken down
- This is the hardest, have enough of a prospect base where you have the ability to turn away from bad deals. Without that, you’ll be able to rationalize any price, even the absence of one. Want to win the price game, learn to prospect.
Remember free is a four latter word, one that begins with the letter F to boot!