In a previous issue of Pallet Enterprise, I covered the basics of value-based sales and how this concept is critical in a more competitive sales market. This article goes beyond the basics to discuss practical steps that companies can take to close deals and address sales challenges.
Value-based selling helps a company position itself as a problem solver and solution provider, not just the lowest price offering a commodity. This approach enables pallet companies to better understand their customers’ needs, build long-lasting relationships and ultimately drive sales growth.
Adding More Value to the Value Position
Effectively conveying the message is essential:
• Use clear, concise language: Avoid jargon and technical terms that they may not be aware of.
• Focus on benefits: Concentrate on the benefits the solution provides to customers. Explain how it will make their lives easier, save them money, or help them achieve their goals.
• Provide evidence: Support the Value Position (VP) with data, testimonials, or case studies that demonstrate the value delivered. This is critical to building credibility and trust. There are great resources out there, like Nature’s Packaging, the Western Pallet Association, the National Wooden Pallet & Container Association and this magazine.
• Train the sales team: Remember “Practice, Practice, Practice”? It applies here as well. It doesn’t matter if it’s a single person or a team. Be equipped through practice and research to present a strong pitch.
So, let’s build an example of a first VP. Here are the parameters:
1. Beverage company
2. Production facility-high volume
3. Both standard 48×40 and custom sized pallets
4. Use both new and recycled pallets of both types.
5. Multiple loads per week
6. Stacking overflow pallets somewhere onsite
7. Stacks are not sorted properly and piling up
“Mr. Prospect, VP Pallet understands the unique demands of a high-volume production facility when it comes to pallets. We can easily help manage this area of your operations so you and your team can focus on what’s important. We’ve done it for other companies and created real savings in costs and time. I believe it can be done here, and I’d like to ask a few questions to find out. Is that ok?”
A more generic “elevator pitch” would be, “VP Pallets develops pallet management solutions that translate into real cost savings and help a company reach their sustainability goals in the supply chain.”
Remember – Practice, Refine, Pitch, Repeat…
Creating a strong value proposition is vital for success. By identifying the key elements of an effective VP, tailoring it for specific customer segments, and communicating them clearly and persuasively, a pallet business will set itself apart from competitors and establish credibility as a trusted provider of pallet management solutions.
Tackling Objections and Resistance in the Wooden Pallet Industry
In the pallet industry, sales professionals will encounter objections and resistance from potential clients. Successfully addressing these concerns is essential for closing deals and fostering strong client relationships. Let’s discuss strategies for overcoming objections and handling resistance. The goal is to help build confidence and improve sales effectiveness.
Identifying Common Objections and Concerns
To effectively address objections and resistance, it’s important to understand the most common concerns clients may have. Typical objections may include:
• Price: Clients may perceive products or services as too expensive compared to alternatives.
• Quality: Clients might have concerns about the durability or performance of the pallets.
• Compatibility: Clients may worry about the compatibility of pallets with their existing equipment or processes.
Active Listening
When faced with objections or resistance, the first step is to listen actively to the client’s concerns. This demonstrates a genuine interest in understanding and addressing their needs:
• Allow the client to express their concerns fully without interruption.
• Paraphrase their concerns to ensure you understand them correctly.
• Acknowledge their concern and ask another question.
Responding to Objections Effectively
Address concerns effectively by providing relevant information and solutions. Consider the following responses:
• Price: Highlight the long-term value and cost savings, such as reduced maintenance, lower replacement costs or improved efficiency.
• Quality: Provide evidence of a product’s durability and performance, such as testimonials from others that use the same pallet types. Also, employing tools like pallet design specifications is useful but not always available.
• Compatibility: Demonstrate the compatibility of the pallets with the client’s equipment or processes, offer customization options or support services if necessary.
Handling Resistance with Confidence
Even when effectively addressing a customer’s objections, they may still exhibit resistance to making a decision. In these situations, it’s important to remain confident and composed. Consider the following tips for handling resistance:
• Ask open-ended questions to uncover any lingering concerns or objections.
• Offer a trial load to give the client hands-on experience and help alleviate their concerns.
Overcoming objections and handling resistance requires a combination of active listening, effective communication, confidence and a little bit of empathy. Practice and role-play with others to become more comfortable with hearing and responding effectively to objections and resistance.
Mastering Negotiation and Closing Techniques
Effective negotiation and closing techniques are essential for securing new customers and building long-term client relationships. Let’s look at strategies for mastering negotiation and closing techniques.
Prepare or Beware
Being prepared is key. Make sure to cover these points before sitting down to finalize a deal:
• Research the client’s business, industry, and challenges to understand their specific needs and requirements.
• Develop a clear understanding of a product’s or service’s value proposition, focusing on the benefits that directly address the client’s needs.
• Identify potential compromises that may arise, such as discounts, payment terms, or additional services.
Building Rapport and Trust
Building rapport and trust is crucial. Consider the following:
• Asking questions and actively listening to concerns.
• Be a valuable resource. Share relevant information, data, and insights that can help the client address their challenges.
• Be transparent and honest in your communication. Set realistic expectations and avoid unrealistic promises that can’t be accomplished.
Practice Persuasive Negotiation
To enhance negotiation skills, practice the following tactics:
• Anchoring: Set an initial asking price or terms that serve as a reference point, allowing room for negotiation.
• Framing: Present an offer in a way that highlights its benefits and value, emphasizing the positive outcomes the client can expect from partnering with a great pallet company.
• Reciprocity: Offer concessions or additional value to encourage the client to reciprocate and make a deal.
Close the Deal
Once you reach a mutually beneficial agreement, it’s time to close the deal. To effectively close, consider the following:
• Summarize the agreed-upon terms and benefits and reiterate the value.
• Ask for the sale directly; be clear and assertive.
• Address any last-minute concerns or objections, providing reassurance and support to help the client feel confident in their decision.
The pallet industry has become increasingly competitive over the last few years. Businesses must adapt and adopt new ways of doing business that may be unfamiliar. These include adopting value-based selling techniques. These techniques emphasize the value a product or service brings to the customer and focus on understanding and addressing customer needs and pain points.
To succeed in this industry, pallet companies must differentiate themselves, build strong relationships, and demonstrate the value of their solutions. By understanding customer needs, tailoring solutions, and effectively communicating the value of their offerings, pallet companies can set themselves apart in a competitive market. Adopting value-based selling techniques can lead to increased customer satisfaction, loyalty, and ultimately, sales growth.
Editor’s Note: Glenn Meeks is a sales consultant, content developer and the owner of Woodview Media. For more information on ways to improve your sales approach, check out The Pallet Playbook – Selling the Value in Pallets. This new resource will be available in July at https://gmeeks70.gumroad.com/l/palletplaybook.
