Value added selling is one of several
sales techniques that relies on building on the inherent
value of a product or service. By its nature the value add technique is a more flexible and customized selling approach that requires input from a defined range of average
customer
In sales, commerce, and economics, a customer (sometimes known as a client, buyer, or purchaser) is the recipient of a good, service, product or an idea - obtained from a seller, vendor, or supplier via a financial transaction or exchang ...
s. This customer feedback helps
sales
Sales are activities related to selling or the number of goods sold in a given targeted time period. The delivery of a service for a cost is also considered a sale.
The seller, or the provider of the goods or services, completes a sale in ...
and
marketing
Marketing is the process of exploring, creating, and delivering value to meet the needs of a target market in terms of goods and services; potentially including selection of a target audience; selection of certain attributes or themes to empha ...
professionals to outline
value proposition
In marketing, a company’s value proposition is the full mix of benefits or economic value which it promises to deliver to the current and future customers (i.e., a market segment) who will buy their products and/or services. It is part of a co ...
s that are likely to benefit the largest number of customers.
The value add may not be initially apparent in the sales overview and is often tied to
upselling or
vertical selling within a specific
market segment
In marketing, market segmentation is the process of dividing a broad consumer or business market, normally consisting of existing and potential customers, into sub-groups of consumers (known as ''segments'') based on some type of shared charact ...
. The utility of the product or service, ease of integration into the customers' business operations or time saving benefits are just a few areas that may be capitalized on when focusing on value add.
Examples
* Food sold in a plastic box or a glass that can be used after its content is consumed.
* Camera sold with converter to old type of photographic lens.
* One of the more recent examples of value-added selling is
hybrid cars. These are cars that rely on a mix of gasoline power and electric power. The inherent value of the product is still the same. It moves a person from point A to point B. The value add can be seen in several different ways. The first is the obvious fuel savings. But there is also added value in less time spent at the gas station, and the cars pollute the air less than a normal combustion engine. The value add in this instance is determined by the customer, and not the company selling the car.
References
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Selling techniques