Why a value proposition for the prospect?

Have you worked with a client to determine if your products and services were the best alternative for the prospect only to find at the end of the sales cycle that the client says, "Thank you for spending the time with me, but, we can't cost justify buying from you!!" OUCH!!

Our clients tell us that in many cases the reason this has occurred is that the prospect can't determine the value or cost justification of a proposed product or service. To make it worse, after the prospect has spent all of that time "looking" they may default to the lowest priced vendor or they make a NO DECISION.

Below are just a few excerpts from industry organizations that point to the importance of cost justification:

• "A project is 60 percent more likely to be approved with a cost justification and business case."
  Gartner
• "More than 82 percent of IT decisions now require a cost versus benefit analysis."
  Information Week
• "Return on investment is king, and projects with a quick and clear cost versus benefit are much more likely to get funding in today's uncertain business climate."
  The Industry Standard

How do I help the prospect establish a value proposition for my products and services?

Value or cost justification is not a broad-brush statement we, as sales people, make to a prospect or existing client. An example of a statement we make could be: "Our sales force automation system will help you improve forecasting accuracy, saving you thousands of dollars in unproductive manpower."

That may be our opinion, but the only person(s) that can conclude that such a product will save thousands of dollars is the prospect or client.

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