The difference between commodity selling and consultative selling
Many salespeople find themselves stuck in the same frustrating cycle. A customer shows interest, a proposal is sent, and then the conversation quickly turns to price. Before long, the salesperson is discounting heavily or losing the opportunity to a cheaper competitor.
While market conditions and competition can certainly play a role, the real issue is often not the price itself. It is the way the sale is being approached. The difference between commodity selling and consultative selling can dramatically impact whether customers focus only on cost or see genuine value in what is being offered.
What Is Commodity Selling?
Commodity selling happens when customers see little difference between one provider and another.
In these situations, sales conversations tend to focus heavily on:
• Price
• Features
• Basic product comparisons
• Discounts
• Fast transactions
When a salesperson positions their offering as essentially the same as everyone else’s, customers naturally make decisions based on whichever option is cheapest. Unfortunately, many salespeople unintentionally create this problem themselves.
Signs of Commodity Selling
Salespeople who constantly get beaten on price often display similar habits.
Talking Too Much About the Product
Instead of focusing on the customer’s challenges, they spend most of the conversation explaining features, specifications, and services. The customer hears information, but not necessarily value.
Rushing the Sales Process
Commodity sellers often move too quickly into quoting or presenting solutions before fully understanding the customer’s situation. Without uncovering deeper needs, the conversation remains surface level.
Leading With Price
Some salespeople bring up pricing too early in an attempt to stay competitive. This immediately positions the discussion around cost instead of outcomes.
Failing to Differentiate
When salespeople cannot clearly explain why their solution is different or more valuable, customers assume all options are equal. At that point, price becomes the deciding factor.
What Is Consultative Selling?
Consultative selling takes a very different approach. Rather than acting like a product seller, the salesperson acts as a trusted advisor who helps customers solve problems and achieve goals. The focus shifts from simply selling a product to understanding the customer’s needs, challenges, priorities, and desired outcomes.
In consultative selling, the salesperson spends more time:
• Asking thoughtful questions
• Listening carefully
• Identifying problems
• Understanding business impacts
• Recommending tailored solutions
• Demonstrating long term value
As a result, customers begin to view the salesperson as someone who adds expertise and guidance, not just another supplier.
Why Consultative Selling Reduces Price Pressure
When customers clearly understand the value being delivered, price becomes only one part of the decision.
Consultative salespeople help customers recognise factors such as:
• Reduced risk
• Improved efficiency
• Better customer experience
• Time savings
• Increased revenue opportunities
• Ongoing support and expertise
This creates stronger perceived value and reduces the likelihood of customers choosing purely based on the lowest price.
The Power of Better Questions
One of the biggest differences between commodity sellers and consultative sellers is the quality of questions they ask.
Commodity sellers may ask:
“What product are you looking for?”
Consultative sellers ask:
“What challenges are you currently facing?”
“What impact is this having on your business?”
“What would success look like for you?”
“What happens if this issue is not resolved?”
These conversations uncover deeper motivations and allow the salesperson to position a far more valuable solution.
Building Trust Changes Everything
Customers are far more likely to invest in solutions from salespeople they trust. Consultative selling builds trust because customers feel heard, understood, and supported.
Rather than feeling like they are being sold to, customers feel like they are being guided toward the right decision.
This trust often leads to:
• Stronger relationships
• Increased customer loyalty
• Repeat business
• Referrals
• Less discounting pressure
Salespeople who constantly lose deals on price are often unknowingly positioning themselves as commodity sellers. When customers cannot clearly see the difference between providers, price naturally becomes the focus.
However, salespeople who adopt a consultative selling approach create more meaningful conversations, stronger customer relationships, and greater perceived value. The result is fewer price driven objections and better long-term sales success. To read more tips on how to improve sales, click here.
If your sales team would benefit from learning how to move from commodity selling to consultative selling, contact Healthy Business Builder for tailored Sales Training designed to help your team build value driven customer conversations and improve sales performance.
Call 1300 622 574 or Email info@hbbausgroup.com.au
Author – Garret Norris – https://www.linkedin.com/in/garretnorris/
