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with that particular behavior. Remember: Rome wasnt built in a day, and neither was the top performer.

SALES TRUTH 8: Adults learn best when they can relate strategies, tactics, skills, and information to what they do every day, so train beginners with less is more in mind.

PRINCIPLE

value

VALUE is defined as Benefits minus Cost (V = B-C). Cost doesnt just mean the price of the service, however. Todays customers look at total cost, both direct and indirect costs.

Direct costs are the dollar price plus other charges (installation for a piece of equipment, postinstallation service, etc.). Indirect costs include such things as career risk to the person or group of people making the decision, the hassle involved in changing, and corporate or other business risks associated with the change.

The price that todays customers will pay for a product or service must provide them with benefits

equal to or greater than the dollars they pay. Most customers will not pay a higher price for a competing product unless they perceive that the value of that product outweighs the cost. Unfortunately, many customers do not perceive the added value that justifies the cost in many commodity products today.

Consultative salespeople are challenged to figure out a way to create value so that customers are willing to pay a little more for the products or services they offer. If they cant do this, they are forced to reduce their price in order to provide value.

Consultative selling of business services is especially interesting as a study in value creation, since these companies dont offer tangible products. Consulting firms such as McKinsey, for example, basically offer the intellectual property produced by their consultants. In order to solve customer problems, these consultants need to be able to think creatively, be self-confident, and have access to proprietary databases. The counsel and advice offered by leading sales, marketing, and consulting firms is almost solely focused on creating customer value-in other words, addressing customer needs and problems in depth. Sometimes salespeople believe they are creating value, only to discover later that the customer doesnt perceive the same value (see Sales Traps 10 and 11).

Of course, creating value for the customer is not always easy. As we mentioned under Principle 1, Adopt an Outside Focus, creating customer value requires strong coordinating efforts between the sales and marketing departments. Its ultimately up to the first-line managers and the field salespeople to implement value creation.

BUSINESS ACUMEN AND KNOWLEDGE

Strong business acumen is also necessary if the salesperson is to create value. Salespeople who want to create value will need to view their clients from a holistic perspective. Top business schools promote this holistic approach by requiring an interdisciplinary rigor. Salespeople need to look at the big picture and see how marketing,