Value Propositions that Win Business

If you want to be successful in sales, you need to have a strategy on how to be desirable to prospects. This strategy can help make a cold call into a prospect if you are able to demonstrate that you are able to help them achieve their goals. You never want to start off a conversation on offering the lowest price because that doesn’t secure relationships especially if you work in a competitive environment. You need to offer more. The lowest price strategy can be a very weak position especially because some competitors will make sacrifices upfront to win the account. Also you need to make sure the selling price is high enough to cover all the expenses to acquire the account.

Your services should be worth something plus that means more money in your pockets. Your services are only valuable to the customer if you can demonstrate to them that you can help them achieve their goals successfully if they buy from you.

Steps in Developing a Value Proposition

According to R. Bagley, a contributor for Forbes magazine, there are 3 steps in developing a value proposition.  (Bagley, 2013)

  1. Identifying customer benefits
  2. Linking these benefits to mechanisms for delivering value
  3. Mapping the basis for differentiation or market play

When coming up with the customer benefits, you have to keep in mind the different goals that the purchaser, decision-maker and end-users desire. For instance the purchaser may want to achieve lowest costs; the decision maker wants a strategic partner that can handle capacity for future growth; and the end-user wants to ensure it’s compatible with operations. Try to develop a value proposition that relates to all the stakeholders.

Value propositions can be one or a combination of the following:

  • Price
  • Technology
  • Service
  • Quality

Tips for developing a value proposition.

  1. Keep it short and simple
  2. Provide tangible outcomes:
    • Improve revenue
    • Cost containment/reduction
    • Increase marketshare
    • Process speed and efficiency
  3. Include additional features outside of the actual product/service such as delivery, installation, or training

Sample Value Proposition

ABC company can improve its market share by a minimum of 4% points in a one-year period in the North American markets by upgrading your current product packaging to high definition printing capabilities and increase product sales at the retail level.


Works Cited

Bagley, R. (2013, April 9). How to Develop a Compelling Value Proposition. Retrieved from

Farber, B. (2009, March 15). Sell Value, Not Price. Retrieved from Entreprenuer:



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