Solution sales can be worth three times as much as tool sales for the same product. This is because solution sales, which involve selling a complete, end-to-end solution to a customer’s problem, add more value than tool sales, which simply involve selling a product or service. The value added by solution sales comes from the fact that they solve a problem for the customer, which tool sales do not necessarily do.
The key to successful solution sales is to understand the customer’s problem and to present your product or service as the solution. This involves a deep understanding of the customer’s business and needs, and a willingness to adapt your product or service to meet these needs.
In contrast, tool sales are often less successful because they focus on the features of the product or service, rather than on how it can solve the customer’s problem. This can lead to a disconnect between what the customer needs and what is being offered.
The higher value of solution sales also means that they are often more profitable than tool sales. This is because customers are willing to pay more for a solution that solves their problem, compared to a tool that simply provides a service.
Despite this, many businesses still focus on tool sales, missing out on the potential profits of solution sales. This is often due to a lack of understanding of the customer’s needs and a failure to present their product or service as a solution.
Go to source article: http://saastr.com/2014/01/29/call-me-maybe-solution-sales-can-be-worth-3x-tools-sales-for-the-same-tool/