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Financial Industry Insights from Advisors Asset Management
On December 20, 2012
Value Is More Expensive Than Price!
Successful advisors want to grow their business and they are usually open to new ideas. Most want to run a business like Starbucks, where price is less important. The problem is their actions are not aligned with what they want. They usually end up competing on price and their business becomes more commoditized thus making it harder to grow.
A value-add is not in the product or service anymore; it’s in the relationship between the salesperson and the customer.
One of the best approaches to growing your business is to provide more value to your clients than your competition! This is easier said than done. The hard part is communicating your value in such a way that people want to do business with you.
Let’s take a closer look at the formula for value: Value = Benefit – Cost
To provide more value we can either,
(1) Add more benefits, or
(2) Lower the cost.
We all know the problem with lowering the cost forces you to compete on price and your value is diminished.
It’s interesting that when most people are asked to define value, only 10% said it was price. 60% said it was the overall experience and 30% said it was the quality of the service.
Today, information is available at anyone’s fingertips. Prospects can get more information on you, your business and, more importantly, your competition. Communicating value has never been more important because clients want to know what else you can do for them. With value-based selling, it’s not “what” you sell but “how” you sell it.
Every sales person should have their own Unique Value Proposition (UVP) that should be communicated as often as possible. The UVP should be no more than a paragraph and you should be able to articulate in 30 seconds or less. It should be simple, compelling and impactful in such a way that prospects want to do business with you.
The easiest way to create your UVP is to identify what opportunity or need your product or service addresses. Ask yourself: Are you different? Can you prove it? Will they care? Is it clear? Can you deliver what you promise?
It’s also important to avoid fluff. You don’t want to use words like: number one, the best, most quality, value added and dedicated, because these words are difficult to prove.
An example of an UVP at AAM is:
Most advisors we work with are struggling to find proven income solutions in this low-rate environment. For over 30 year, Advisors Asset Management has been working with top advisors across the country helping them deliver income solutions and strategies. These solutions have been time-tested and proven in all market cycles.
Creating your own unique value proposition should help you grow your business. Price will become less important and your prospects will be less inclined to do business with your competitors if they understand what makes you unique.
This commentary is for informational purposes only. All investments are subject to risk and past performance is no guarantee of future results. Please see the disclosures webpage for additional risk information. For additional commentary or financial resources, please visitwww.aamlive.com/blog.
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