Starting a New Business? 5 Basic Principles for Selling

Whether you are already up and running or simply just testing the waters trying to find out whether your new business venture has what it takes to succeed, there are five basic principles that if followed correctly will significantly increase your chances of success.

According to Bank of Ireland, 66% of startups fail within the first five years and as much as 80% of businesses that fail because they actually do not even bother to develop a business plan. In the initial stages, it is crucial that you increase your odds of success by doing the research first. Perhaps the first question that should be asked is whether the product or service will sell sufficiently and sustainably. The only way to be successful is to accumulate sales and the chances of success will be increased dramatically if the following five core sales principles are adhered to;

5 Core Principles for Selling

1. Benefits

Consumers will only purchase a product or service that they will find useful or beneficial. This is a fairly basic observation but a sales person NEEDS to now that when selling to a consumer, whether or not the consumer will actually benefit from what they are selling otherwise everyone is wasting their time.

A good sales person will be able to convert features of the product into benefits. For example, a product or service that saves money for the consumer will always be easier to sell even if it is a luxury item as it makes “cents” especially given the current cost of living. A product or service that increases productivity means higher output and increased revenue.

A salesperson should enthusiastically identify the benefits and if possible the differences where there are competitor products available.

2. Value vs Price

Above all, consumers are sensitive to price. Most business want to make a profit and the higher the percentage profit the better. The market generally decides what is acceptable and it would be ill advised to deviate wildly from the market unless your product or service is offering something that will justify that price change. For example, your product will not last long on the market if it costs the same as your competitors but only has 75% of the features.

This is fairly basic but is fundamental, the greater the benefit the more we are willing to pay for something. When developing the product always have the customers needs in mind. Improving products is essential and is what differentiates businesses but only do this if it is something that will benefit the customer. What might feel important to you may have little impact on consumers when choosing to purchase. Again, do the research before, do a survey and ask people what they would look for when it comes to your product and if they could suggest any improvements or new features.

Basically, the more value attached to a product or service from a consumer means the higher a price that can be acceptably paid for it and vice versa.

3. Credibility

Experience and knowledge brings trust. We can only influence a person if we understand, trust and have experience in what we are trying to sell. Gaining trust is something that is difficult to achieve and where possible, demonstrations, samples or presentations are the best methods of accomplishing it.

Once you can demonstrate that you can provide a beneficial product that is valuable and reliable, you will have achieved credibility. Consumers will then trust your opinion and be more comfortable in what you are telling them in the future.

4. You

Just be yourself, if you are not, you will not be able to reach people.

If you reiterate something somebody taught you or waffle off a sales spiel that you heard, this is not going to work. People will see through it and you. It is like public speaking, it is difficult but if you truly believe and have a passion for the subject, you will succeed in getting your message across. What you really are selling is you, and not the product. You are selling your belief that you can solve a problem for the consumer that will benefit them.

5. Sales time is a time for giving

Are you happy that you got the sale? Of course, but what now? What about the next sale. A happy customer is a returning customer. Customer satisfaction is what breeds loyalty and if you were to throw in a little bonus free to the customer on top of what they have paid for, there is a high possibility that they will return for business again and again. Whether it be an accessory, discount or loyaly points, it all lends to the mentality that the consumer is getting more than they paid for therefore they feel valued.

At iBrutes, we promote small businesses and startups for a living and it is our business to bring customers to our customers. If you are looking for advice, do not hesitate to contact us at info@ibrutes.ie