Do Commodity Products Exist?

Often times I hear people tell me, "David, my product is becoming a commodity. How can I win more deals when I am selling a commoditized product?" If you think this is the case, you are dead wrong. How has Toyota climbed to the #1 selling car manufacturer, out selling Ford and GM? What about Kleenex and Coca-Cola?

Differentiation is critical!

How do you explain Miller Beer capturing huge market share from Anheuser Busch? They differentiated themselves with what we know today as Miller "Lite" Beer. Whether it is differentiating through product capabilities, marketing, methodology, or strategy your customer must have the perception that you are different than the competition.

How is it that I have been a loyal Cingular customer for 8 years? In my eyes, Cingular differentiated itself from the other cell phone providers. Call it marketing, positioning, better sales, but to me, Cingular was absolutely different. Their monthly "rollover" minutes plan, 5-bar network reception, free in-network calls, no other company had these things that I found of value. Top it off with excellent customer service and Cingular has a life long customer.

The reality is that if you feel that you are selling a commodity product, it is because you are failing to differentiate yourself, your product, and your company from the competition. Be different than every other sales reps that sells similar products. Instead of asking standard questions like, "Can you tell me a bit about your company. Have you heard of my company?" Do some research and learn about the company you want to sell to so you can ask intelligent, thought provoking and unique questions that the prospect has never heard.

Differentiation is critical!

Rather than focus on things that you and the competition both can do, focus on everything the competition cannot do and the risk of overlooking these critical components.

Differentiation is critical!

Rather than talk about price, be of value to your customer. Demonstrate your expertise and business acumen in understanding their business so that you can provide creative ideas to help them grow their business and generate revenue. Every single company out there is in business to make money, it is that capitalist way, it is why they are in business. Show your customers how they can generate revenue, increase profits, increase productivity, and you will win business every single time.

Have a positive attitude, exude confidence in yourself, your company, and your product and your prospects will realize that they are not buying a commoditized product.

Differentiation is critical!

Thanks,
David Chao
The Web Conferencing Expert