The Two Market Forces That Killed Solution Selling Forever (Part 1)
This post is the first in a series we’ll be featuring from David McNicholas, Director of Strategic Business Development at Comstor US. Comstor is a recognized global leader in Cisco product distribution and an established provider of networking and advanced technology solutions. David is a recognized keynote speaker in the field of the financial impact of technology, executive strategic selling and the creator of ERS (Executive Relevance Selling) – a Cisco endorsed program (more on that below). David has trained and consulted data center, contact center, customer service operations professionals and specialists, as well as Fortune 1,000 Executives all over the world on this methodology and discipline.
The world has forever changed and how technology must be sold has, too. Solution selling is dead because the major foundational assumption of solution selling is that a budget exists. Now the VAR must create the budget. The two market forces that killed solution selling are the same forces that require budget to be created by the VAR.
So, what are the two market forces that killed solution selling?
Ongoing Global Economy: The world is economically connected and what ails Europe will ail many. What happens in China unfortunately doesn’t stay in China. As the largest foreign holder of United States Treasuries at 23.8 percent, China pegs its currency lower than the US Dollar thus offering prices for goods and services that are virtually impossible to compete with in the United States. It’s a statistical certainty; there will never be a time when the entire world is simultaneously prospering economically. If it does, it will be fleeting. As such, corporations and organizations are forever weary of the certainty that there will always be a country (or countries) somewhere that has fallen down and is trying to get back up to some degree. This overarching dynamic will have a permanent restraining effect on the way companies deal with capital expenses.
Investment Centric Buyers: As a result of global weariness, many companies have a strong cash position. Confidence to invest outside the company in equities and the like are viewed as too risky for the possible paltry return. All decisions are being made in the executive suite. EVERYTHING must pass executive investment scrutiny. In executive speak this means:
- What are the hard measureable cash flows this purchase will drive?
- For the required investment:
1. Will it cover the corporate cost of capital?
2. What is the internal rate of return?
3. What is the payback period?
As a technology solution VAR, this means you must be able translate your solution into predictable quantifiable cash flows and business results.
Have I got your attention? Then stay tuned for more on the demise of solution selling. I will cover why old school solution selling no longer works in an investment centric risk adverse market place. Until then, check out this video to learn how Comstor Executive Relevance Selling (ERS) can help you change the way you sell and gain a competitive edge in the marketplace.
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