Shifting Customers’ Focus from Price to Value

Due to the competitive nature of the industry, supply chain solution manufacturers frequently face pressure to either lower their prices or risk losing the sale. When an established vendor on the West coast faced this challenge, salespeople approached their CFO requesting they begin offering financing to their customers. Although they were conversing with value-driven buyers, consistently lower prices from competitors were causing them to consider making price-driven decisions. The sales team needed a strategy to fight their low-cost rivals.

– CFO, West Coast Supply Chain Solution Manufacturer

The Customer’s Win: Convenience

The ability to finance projects directly through the manufacturer at no extra cost delivered both convenience and value. Customers could pay on their own terms, customize payment plans to align with their budget goals, and eliminate the time-consuming process of coordinating with a bank.

The Vendor’s Win: Focus on Value

By presenting a proposal with a customized payment plan, the salesperson eliminated the initial apples-to-apples comparison (the full price of their solution versus the full price of a competitor’s solution) that was causing hesitation for customers. Instead, they were able to focus customers’ attention on the value they were receiving rather than the price disparity.

In the customer’s eyes, the vendor’s financing program made them a full-service provider—they manufactured the solution, distributed it, and could also finance it. When the sales team offered payment options, there was no confusion. They were talking about their own financial services division and bypassed the need to talk about First American’s credentials. Behind the scenes, First American was running the program, but to customers it appeared as a single, seamless process managed entirely by the manufacturer.