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The essential difference between product and service companies: not   Message List  
Reply | Forward Message #227 of 442 |
So many service providers treat it as a given: that their businesses are
fundamentally different from those that sell physical products.

On the surface, it seems an innocuous enough assumption. There must be
an essential difference between the sales processes of firms that sell
physical products and those that sell intangible services.

When I'm asked if we've every applied our method to service providers
(which we have, of course), I'll always respond by questioning that very
assumption?

Here's a typical dialogue:

ME: Can you tell me, in what manner does your sales process differs from
that of a company that sells physical products?

POTENTIAL CLIENT: Well, when you're selling something intangible,
there's nothing for the potential customer to look at, to touch or to
test drive.

ME: Well, if that's the case, how does a potential customer make a
purchasing decision?

POTENTIAL CLIENT: I guess it comes down to the prospect's trust in the
salesperson: the quality of the relationship.

ME: If you compare your salespeople with those of your direct
competitors, can you make a case that your salespeople are *materially*
different (in some commercially-relevant way) from those of your
competitors.

POTENTIAL CLIENT: I'd like to say yes but, honestly, I think I'd
struggle to make that case.

ME: So, if your salespeople are not your point-of-difference, what is?

POTENTIAL CLIENT: I guess it is - or should be - our processes, our
infrastructure, our methods.

ME: Good. So your salespeople should really be focussing on selling your
superior method. Tell me, with this in mind, how thorough a job have
you done of packaging this method so that it can be effectively sold by
salespeople? Is it packaged to the point where prospects can look at
it, touch it and test drive it?

POTENTIAL CLIENT: Well no. Actually, it's not packaged at all. We
definitely have superior methods, but we almost treat them as a trade
secret! Salespeople can only make bold claims: they have no story to
back those claims up. No data. And no evidence.

ME: Interesting. So, it sounds like your core problem is that you're
attempting to sell something that's intangible (and unquantifiable),
rather than selling a *tangible* packaged methodology.

POTENTIAL CLIENT: Right.

ME: So, in answer to your question, a moment ago, yes we have experience
with a range of service providers. But you can rest assured that we're
not going to build you a sales process like a typical sales provider's.
We're going to show you how to package your methodology and sell it as a
tangible product. In other words, our experience with companies that
sell physical products is just as valuable - if not more so.



Tue Apr 11, 2006 10:31 am

justinroffmarsh
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Message #227 of 442 |
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So many service providers treat it as a given: that their businesses are fundamentally different from those that sell physical products. On the surface, it...
Justin Roff-Marsh
justinroffmarsh
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Apr 11, 2006
10:31 am

Justin A few years ago I wanted to expand the client base that I had and there was an opportunity to work with my brother in law (he had been made redundant...
Jim Bowles
mikeorjim2003
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Apr 12, 2006
9:35 am

Thanks Justin I'll turn what you have given me into a PRT and maybe even a TrT and see if there are any gaps. Over the past few days I have come to realise...
Jim Bowles
mikeorjim2003
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Apr 12, 2006
10:42 am

It seems to me that not only are you selling a methodology, you are selling a specific business benefit - and a method of doing it. People don't want your dog...
Mark Woeppel
mwoeppel
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Apr 17, 2006
10:17 am
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