I’m not one to say that sales is all about numbers. In fact, I’d go as far as to say sales is unrelated to numbers. It’s about connections, people, and communication.
With that said, there’s one formula that I live by wholeheartedly.
V > P = S
It’s not what you think it is. It has nothing to do with velocity or air pressure or anything remotely mathematical. V > P = S says that when the value you provide is higher than the price of your product or service, you get a sale of your product/service. Sounds simple, right?
All of that goes to say that V > P = S is important for your business. On a foundational level, it can elevate your client conversion strategy so that you’re doing more than just making money, and instead, you’re making connections with people who really like what you have to offer. But it all comes down to your connection with potential clients. You need to listen to their wants and needs, present with those wants at the forefront, and then seal the deal with that new client giving them exactly what they’re looking for. We’ll cover that and so much more, so let’s dive in!
Integrating the Formula Into Your Sales Conversations
Before you can start applying the V > P = S formula to your business strategy, you need to know how you’re going to utilize it to gain trust from your potential clients. It begins during the discovery process. This is when you’re actively listening to your potential client, asking questions, and really diving into their wants and needs. They have a want, and your product or service can help with that want, but you need to hear them out first.
When the microphone is handed over to you and it’s time for you to present to someone (or multiple people), keep your client’s wants in mind. Remember what you learned from the discovery process, and integrate this into your session. Make sure your product or service hits all of those wants, and if it doesn’t, find a solution so that it does. Once you’re able to satisfy those wants and the value goes above and beyond in meeting them, you have a sale.
Breakdown of the Formula
Since we’re using letters to stand in for a word, here’s a quick guide for you to remember what each component of the formula means:
V → Value
P → Price of your product or service
S → Sale
Keep this in mind as we go through each of them. You’ll have it memorized soon enough, but it helps to have a cheat sheet in the meantime.
There is value in almost any business. Whether you sell a product or offer a service, your business is marketable for a reason. It doesn’t matter what your reason is—there is value behind it. One of the things I teach is how to find that value and capitalize on it. It’s hard to preach about the value of your product or service if you don’t even know it yourself. How are you going to get consumers on board if you aren’t on board? This is step one: Recognizing the value.
Once you know what your value is, you can begin to provide even more value. At this point, you know what you have to offer, and you have a good understanding of how your customers respond to it. You can gauge their needs and understand what would make your products or services even better. That’s when you increase the value. You don’t have to stop there—in fact, you shouldn’t, but to understand this formula, you can use this as your ultimate goal.
The price is fairly straightforward. It’s what you decide to charge for your product or service. This number doesn’t come out of the blue, and it depends on a variety of factors—the cost of production, your business goals, other competitors, etc. As you’re considering these factors, remember your end goal with your value meter. You want your value to be more than your price. You do not want to be looked at as a commodity. If you do, then your potential client will buy based on price alone.
That doesn’t mean lowering your price significantly just to reach the V > P goal. It means doing your research and having a game plan for your price(s) and then going above and beyond to serve your customers the right way, by giving them more value than they expect. Some would call it “More bang for your buck,” which is a solid strategy for any good businessperson.
The sale is your victory. This is when you’ve successfully matched a customer’s wants with your product and exceeded their expectations. In the context of our formula, the sale is when you’ve provided your customers with so much value that they feel confident in giving you their money.
It’s a big deal to trust someone enough to pay them. We don’t think about it much because as consumers, we do this on a daily basis. But in the business world, it’s one of the main objectives. Here’s the thing: It’s not about being sneaky or tricky. It’s about understanding consumers on a very fundamental and human level. After all, they’re humans just like you and me. They weigh their options, and they make decisions based on the information they have at a given time. If you can inform them that your products or services will be worth every penny they spend, you make a sale. It’s not cheesy or dishonest—it’s true.
How does this pertain to my business?
Let’s say you already have a booming business. Or maybe you aren’t focused on sales. Perhaps you’ve had a great year and you can’t imagine having more clients. These are all valid points, but I’d like to shed some light on the impact this formula could make on your business as a whole.
See, it’s not about instant gratification. You may see amazing results in a short amount of time, but maybe you won’t. The reason why your business needs to use the V > P = S formula is that it encourages you to reach the right people the right way.
Following this formula encourages you to look at your products and services differently. Instead of sticking to a routine pitch on why your business is a great fit for your future & current clients, you’ll be really thinking about the mission behind your business. You’ll put yourself in the minds of your clients, which will empower you to improve your products and services.
We should all be constantly striving to improve. Sometimes we need a push, though. This formula is the push you need to improve your business so that you’re promoting something you’re proud of.
Factor this into the equation
Here’s the bottom line: V > P = S makes you a better businessperson.
If you care about your business, you care about your customers. Your customers care about their wallets—and in turn, they care about what they’re getting for their investment. All of that goes to say that YOU care about the value your customers are getting.
When you frame it this way, a new client isn’t about more money for you. It’s about connecting with a client who is satisfied with what you offer, and you are successfully able to show them that your products or services are just what they need.
The next time you need to hop on a coaching or strategy call, think about it with this in mind. It will change your world, I can attest. Take it day by day, one S at a time.
This article you just read now is an important part of my Get Clients. Not Leads. philosophy. It shows you how important VALUE is to your clients! I recommend you read the article “The Oprah™ Principle And How You Can Use This To Get More Clients” next so you can see what needs to happen before you speak to your future client!
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