The 90s are calling, and they want their phrase back. Total cost of ownership? That’s old news.
Today, it’s all about the total benefit of ownership. Customers don’t buy because of cost. They buy because of benefit.
I’ll admit—there’s only one thing I buy that I don’t really need: Girl Scout cookies. But you’re not selling Thin Mints. Your customer has to see a reason to buy from you, and that reason lies in benefit, not price.
Value Isn’t What You Think It Is
Here’s the mistake too many salespeople make: we define value from our perspective, not the customer’s. Wrong.
It doesn’t matter what you think the value is. It’s only about what the customer believes. And you’ll never uncover that unless you look downstream.
What happens once they put your product or service in place? That’s where the real value shows up.
The iPhone Example: Why Price Doesn’t Matter
Let’s talk iPhones. Are they expensive? Absolutely. Overpriced? Probably. But here’s the deal:
When you break it down—the tasks, the activities, the daily impact—suddenly that iPhone becomes cheap. And when you consider how long customers keep their phones, it transforms into an absolute bargain.
That’s the total benefit of ownership. It’s not about the sticker price. It’s about the long-term benefit.
Look at Your Customers from Last Year
Here’s your challenge: go back and look at the customers you sold to last year.
- Are they still using what you sold them?
- How are they benefiting today?
- How has it helped them achieve their goals?
This is how you begin to understand the true value of what you sell.
Dollars and Cents: Always Tie It Back
I use a CRM system. Do I pay for it just to store data? Of course not.
I pay because it helps me generate revenue. It saves me time. It keeps me connected to prospects and customers. That translates into dollars and cents.
Everything you sell should translate into customer benefit—in measurable terms.
Customers Will Pay More for Benefit
Here’s the reality: customers will always pay more if the benefit is clear.
Price is irrelevant when benefit is strong. What matters is:
- How long will they use it?
- How will it impact their business?
- How will it help them achieve outcomes?
That’s what wins deals.
The Sales Challenge: Ask Tougher Questions
Here’s the tough truth: most salespeople don’t ask enough tough questions.
We avoid them because we don’t want the conversation to go sideways. But when you avoid those questions, you never uncover what you need to know. And then you wonder why deals stall in your pipeline.
Don’t just keep the conversation moving. Dig deeper. Go downstream.
Your Assignment This Week
This week, I want you to stop and ask yourself:
- Do I understand how long my customer will have my product or service?
- Do I know exactly how it benefits them?
- Am I asking tough enough questions to uncover the real impact?
