Selling Commodities

"How do you create a perceived value to differentiate yourself from the competition when you are both selling a commodity?"

That's a question I'm often asked in my business to business sales manager training and corporate sales training. It uncovers a problem that is spreading to almost every industry. The rapid pace of technological development and our ultra-competitive global economy means that no one can keep a competitive edge in their product for very long. Develop a hot new product or service and before you can take your first check to the bank, a competitor has a hotter or cheaper version. As a result, customers are more and more inclined to view your product or service as a commodity - no real difference between you and the next guy.

This complicates life for the sales person. In some cases, you are selling exactly the same thing as your competitor. I spent a number of years selling for a distributor who sold, for the most part, exactly the same products as four or five competitors. Many of my clients work in this arena. Lumber distributors (a piece of lumber is a piece of lumber), industrial fasteners (a screw is a screw is a screw), petroleum (87 octane gasoline is 87 octane gasoline), etc. The list goes on and on.

In other cases, your product may not be exactly the same, but the customer views your product as a commodity with no real differences between what you sell and what your competitor offers. How much real difference is there between Coke and Pepsi after all?

Regardless of the situation in which you find yourself, the problem for the sales person is the same - getting the business in the face of the customer's perception of your "me too" product or service.

So, what do you do? This is what I usually says in my business to business sales manager training and corporate sales training: you must detail and communicate the important ways your offering differs from your competitor's offering.

That's easier said than done. To do so effectively, you need to spend some time thinking and preparing. And that means that you must carefully consider the two most important elements of the sale - your offering, and your customer. In this column, we're going to focus on one part of that equation - your offering.

Granted, your product may be exactly the same as the competition, but the totality of your offering may be dramatically different. I use the word "offering" to indicate every aspect of the purchasing decision - not just the product. For example, the customer buys the product from a company - yours or the other guys. The customer buys it from a sales person - you or the competitor. Your company and you are part of the "offering." In addition, there may be differences in your terms, delivery, your customer-service capabilities, your follow-up, your return policy, your value-added services, etc. All of these are part of your "offering."

business to business sales manager training, corporate sales training

Author's Biography:

Dave Kahle is a lifetime sales person. He has been the number one salesperson in the country for two different companies in two distinct industries. Since 1988 he's been president of The DaCo Corporation, focusing on helping clients improve their sales and develop their people. He is a specialist in Business to Business Sales Manager Training, and regularly holds Corporate Sales Training workshops.