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There are five key points suppliers can sell on:

  1. Price - the amount the customer pays for goods and services.
  2. Value Added - the supplier's ability to reduce the customer's costs and/or increase their revenues.
  3. Performance - the supplier's ability to meet customer requires and the costs that are incurred when they do not.
  4. Compatibility - the working relationship and system integrations that make it easier to do business with each other.
  5. Risk - the supplier's ability to minimize the potential for things to go wrong.

Unfortunately for many suppliers it can be difficult to create a distinction on points 2 through 5. When that happens, the customer often starts to treat all suppliers and supplies as equals. The result is that they buy on price.

Look at it this way; how often do your competitors say they can do the same things you do or as well as you can? And if you cannot get the customer to see the difference then why should they pay for the difference? That is the problem with many proposals today. They all sound the same. And even when they do differ, how much are your added abilities worth? 1% more? 10% more?

You need to prove it! Or you will lose a number of accounts that don't see it.

That is what developing a unique selling proposition is about. Creating a competitive distinction, not around "trust me", but one that shows the customer your distinction. Too often we do that just by listing our assets. But every other supplier lists the same ones.

To prove it we need to do several things:

  • Show the total cost impact from the value we bring and compare it to the price the customer pays. Prove to them that paying more actually costs them less in terms of total cost.
  • Tie the services and products you offer to how they will help accomplish the customer's objectives.
  • Identify the risks the customer faces before they do and layout how they can be controlled.
  • Show the plan for implementing and managing the change you suggest.

This can help you to create a competitive advantage with your customers. This is what Developing a Unique Selling Proposition is all about.

For more information on the tools for you to improve your sales and to create a competitive advantage, take a few minutes to review the following options:
Or contact us at:
Underhill & Associates
PO Box 35895
Tulsa, OK 74153
Phone: 918-404-8085
Fax: 918-494-3718
Email: underhill@underhill-assoc.com