True costs cover the complete picture of expenses associated with a product or service throughout its entire life cycle. This goes beyond the initial price you see on the shelf. Here's a breakdown of what contributes to true costs:
Economic costs (the sales price)
External ecological costs (eco costs)
You can find more information on True Costs here.
Why True Costs Matter in Sales
With that being said, what influence does True Costs have on sales? Below, we have listed some of the ways that True Costs can help your sales team:
Informed Decision-Making: Customers are becoming more conscious than ever before, about the impact of their purchases. By presenting the true costs of your products, you empower them to make informed decisions - something that could align with their values and long-term goals. This transparency builds trust and strengthens your relationship with the customer. By presenting the true costs of different options, including the product's environmental impact and end-of-life costs, you enable your customers to make choices that support their sustainability initiatives.
Value-Based Selling: True costs allow you to shift the sales conversation from price to value. Now, you can begin to emphasize the long-term benefits of sustainable and responsible choices, even if they might have a slightly higher upfront cost. For example, a product made with recycled materials might have a higher initial price, but the lower environmental impact and potential for cost savings over time can make it a more valuable option in the long run.
Unique Business Opportunities: In the future, the eco costs will become internal costs as a consequence of governmental regulations (Eco-tax, Tradable Emission Rights, Best Available Technology etc.). The question is not if, but when. True costs create new business opportunities for companies that can produce products with lower environmental costs, as they could charge a premium price for their products.
Competitive Advantage: By proactively bringing up true costs, you show your company's commitment to transparency and sustainability. This can be a powerful tool in a competitive market, attracting customers who prioritize these values. Moreover, it can also help companies reduce their environmental risks and be compliant with sustainability regulations and stakeholders' expectations. This significantly improves the reputation of the company and its brand.
Leveraging True Costs with Pickler
Pickler is a powerful tool that helps you calculate and analyze the true costs of your products and packaging. Here's how you can use it to gain a competitive edge in sales:
Data-Driven Insights: We provide you with detailed data on the environmental impact and End-Of-Life costs of your packaging products. You can use this data to prepare for sales conversations with your customers, and confidently discuss the true costs of your products. For example, use Pickler to generate a report that outlines the true costs of your different product options. This allows you to tailor your recommendations to the customer's specific needs and priorities.
Transparent Communication: Use Pickler's reports and visualizations to clearly communicate true costs to your customers. Use this information in your sales presentations and proposals to make it engaging and easy to understand.
By embracing true costs and leveraging Pickler's capabilities, you can transform your sales approach. You'll build stronger customer relationships, close more deals, and contribute to a more sustainable and responsible future.
Should you still have any questions regarding the above, then don't hesitate to reach out!