Product and offer

Product and supply are two different things.

A Samsung 42″ QLED Model 4k TV is a product.

R$ 2,359.00 at sight or in 12x R$ 190.00 is an offer.

We have two very frequent problems in sales areas.

1. Product and offer are seen as unique

It's when you don't have the culture of checking the market on an ongoing basis and taking your temperature as to the combo that competes (product + supply).

This happens because of past successes ("we have always sold this way") that prevent a new vision and especially the implementation of a culture of adaptation.

But when the product is seen as an add-on to your offering, it gets even worse. The company is simply plastered by its cost structure and competes poorly most of the time.

Example of a company with low competitiveness:

  • Product X costs Y

Example of a company with high competitiveness:

  • Product X costs Y at sight
  • Product X costs Z in 12x of ... = = Another offer, another value
  • Product X + Bonus = Another offer, another value
  • Product X + Warranty = Another offer, another value
  • Product X + Upgrades = Another offer, another value
  • Product X + Exchange = Another offer, another value
  • Product X + Added Services = Another offer, another value
  • Product X + Product X = discount
  • Product X + Product Y = more discount or get bonus

2. Product has no supply

This happens in service companies that propose to make bids (proposal) on a project-by-project basis.

  • Consultancies that charge by the hour and by scope
  • IT companies that charge by project
  • Construction and remodeling companies
  • Advocacies

Yes, I know. Things have worked like this for years. The leads come to your company, tell you their needs, you try to build trust during the conversation, until the lead asks for a proposal to solve their problem, you prepare it carefully and send it off with all your care.

Two weeks go by and your lead seems to have been abducted to Mars. He is gone.

Very classic. Believe it. It happens in all segments for companies big, small, in Brazil and in Thailand.

There are no errors here. Once in a while you will close something. That something can be big and you can work that account for a long time.

But we won't be able to scale our company, reduce values, standardize processes, and gain competitiveness this way.

The nature of the service is the same: projects. But we need an offer to prospect the market. In fact, we need several offers.

It becomes impossible to get clients with a "I want to schedule a meeting, to present our company and cases, listen to your needs and make you a personalized proposal." stance.

I think you will need to talk to more than 300 to 400 companies/people to be able to close with one in this format. It is practically unsustainable. The account will not close.

You need to create products and offerings so that you have something propositional to offer your market. This will create a gravitational field around you even for you to sell, including your custom designs.

Stavros Frangoulidis
Stavros Frangoulidis
CEO of PaP Solutions ⚡ Let's connect on Linkedin too

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