Value is not always a matter of concrete improvements.
Sometimes it’s about changing the perception of a product or service.
James Watt, whose name we associate with the steam engine, illustrates this brilliantly.
Watt did not invent the steam engine, but he revolutionized its design in the 18th century.
When he tried to sell his steam engine to the British mining industry, he met with resistance. The mine managers were satisfied with their horses as a power source and saw no reason to replace them.
Watt’s stroke of genius was not to change the construction of the steam engine, but to change how the mine managers viewed this novelty.
He introduced the concept of “horsepower” – a unit that illustrated how many horses a steam engine could replace.
Suddenly, the value of the steam engine became clear, and we all know how successful Watt was.
This example shows that value can be created in two ways:
Objectively: By improving the functions and performance of a product or service.
Subjectively: By changing how people perceive the value of a product or service.
In Watt’s case, it was the subjective change – making the value of the steam engine understandable to the mine managers – that led to the deal.
All of us who work in sales can learn from this.
Don’t just focus on improving what you offer, but also on communicating its values in a way that interests and engages your target audience.
Here you can read about B2B-buyers are reasoning in their buying process.
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