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How to Compete and Win When the Stakes are High_6

Tham khảo tài liệu 'how to compete and win when the stakes are high_6', khoa học xã hội, kinh tế chính trị phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | Six Essential Design Questions 159 determined financially. In the Diagnose phase we assigned a cost to the customer s current situation or cost of the problem CoP . In the Design phase we calculate the financial impact of the solution FoS . This does not mean that it is time to talk about the price of our solutions or to begin negotiating price with the customer. Instead we are going to quantify the financial impact of the desired outcome that is what the customer can expect in terms of increased revenue and or decreased expense. We want to determine what it is worth to the customer to solve the problem. The value of a solution and an appropriate investment to obtain it can be expressed with a simple equation Financial impact of the solution FoS Cost of solution CoS True value value When customers know the financial impact of a solution many of the price pressures that salespeople typically face disappear. In fact the actual cost of the solution being offered becomes far less important than how that cost compares to the value the customer stands to gain. The ability to analyze value in this way is a significant improvement over the typical side-by-side price comparison of solutions that tell customers nothing about how much value each solution will create and therefore nothing about what a realistic investment could be to solve the problem. Investment Expectations What Level of Investment Is Appropriate to Solve the Problem Once the value parameters are set the next solution parameter is what level of investment makes business sense for the customer. This can also be expressed in a simple equation 160 DESIGN THE VALUE-RICH SOLUTION Financial impact of the solution FoS Customer s required ROI return on investment Maximum investment Defining investment expectations is a boon to both the customer and the sales professional. The customer now knows how much to realistically invest in a solution. The sales professional now knows whether the solution is financially .