All sales professionals need to be deeply versed in the concept of Total Cost of Ownership. Unless of course what you’re selling is a commodity with no differentiation, and your company provides nothing beyond the bare essentials of customer service and support.
If that describes you, then by all means stay laser-beam focused on your low, low price.
It can be a challenge though, to get your customer – particularly those hard-nosed, old-school purchasing types – to think in terms of TCO. Thanks to Harry Moser, Founder & President of the Reshoring Initiative, I’m able to share three tools you can use to help get the message through.
One: Listen to the brief audio clip above. Get your price-focused customers to listen. If 10% more US manufacturers used TCO-based instead of low-price decision criteria, they’d create at least one million new jobs. If 20% more US manufacturers used TCO-based instead of low-price decision criteria, they’d create at least two million new jobs.
Two: Listen to Harry’s entire Manufacturing Revival Radio interview. He’s talking about manufacturing management, but wow what a professional selling lesson!
Three: Study and use the Reshoring Initiative’s TCO Tool. Better yet, use it as the basis for building a TCO tool that tells your unique story.
Like I always say, they don’t care about you. They don’t care about your company. They don’t care about your products and services. They’re all in the money-making business. They care about TCO!