You may recall Seth Godin’s hierarchy of factors that cause a non-business-owner to say “yes” to a proposal made in a business-to-business setting: avoiding risk, avoiding hassle, gaining praise, gaining power, having fun, and finally, making a profit. When you approach a prospect with an energy solution, you would be wise to keep this hierarchy in mind. Even if you believe your offering will generate all kinds of savings, for example, if it is perceived to be a risky investment or too much of a hassle to pursue, you’ll likely not prevail.
I ran into a fellow energy professional at a networking event who shared with me that it was challenging to have people agree to a direct install of his company’s efficiency product. In fact, even though the utility was paying the entire installation cost, he was struggling to get his closing ratio above 70%. Why do you think he was having difficulty giving away a free offering? Perhaps his prospects didn’t believe his savings projections. Perhaps the installation process seemed to be too disruptive. Perhaps the perception of risk and hassle outweighed any potential praise, power, or profit. And as for “fun,” that’s another whole story!
So, what’s the moral? Price is not the arbiter. If it were, all but the lowest-cost products and services would be obsolete. Do yourself a favor and focus on all the issues that sway decisions. And while we’re on the topic, “saving money” is not exactly the same as “making a profit.”
Bottom line, make sure you pay attention to the five higher-ranked motivators in Seth’s list before assuming that energy savings alone will carry the day.
