respectable veteran salesperson said this the other day: "We don't need to differentiate to sell." Reflecting on this statement, a blinding glimpse of the obvious hit me: Unless a purchase decision is based on chance (such as drawing lots or flipping a coin) differentiation is involved in making the sale.

I think this point is profound enough to bear repeating. For all practical purposes, every sale is based on some type of differentiation.

Even in commodity sales, where all products are equivalent, there are specific reasons why one supplier is chosen over the competitors and why one product or service is selected over the alternatives.

Price is usually the differentiator with commodities, but the differentiator could be many other things including availability, quality, selection, service or brand. It also could be something as trivial as having a history with a supplier, a prominent position on a certain list (such as in the Yellow Pages or a list of approved suppliers) or even the color of a logo.

When purchasing something, individuals make a selection based on a decision process; they are wired to have a reason to justify their decision no matter how trivial the reason may be.

What does this mean for selling merchant services? Whether you as a merchant level salesperson close the deal is based on how well you differentiate your offering from the other alternatives available to the merchant. Following are a few differentiators to use in signing merchants without resorting to lowering the price:

Me

If located near a merchant you can install equipment, reprogram terminals and provide training. You can also be on site, if necessary, to help the merchant resolve a problem. Merchants find comfort in having someone nearby who will be there for them in a reasonable amount of time.

Me, Too

If you are personable and appear to be highly qualified, you are more likely to get a merchant's business. Individuals want to do business with those whom they like and believe are qualified. Hone your interpersonal skills.

Something New

Merchants are bombarded by acquirers all the time. Show them something different. If they have a high average ticket and don't accept PIN debit, talk to them about the cost savings of PIN debit over signature debit (despite maintaining good margins for you.) This isn't lowering the price; it is lowering their costs.

Could a gift or loyalty card program help merchants increase sales? If so, this might separate you from your competitors who led with credit card processing and lower price.

Do merchants need working capital to expand the business but can't get a bank loan? Merchant capital advances can reward you with serious profits. They also can provide "stickiness" to those merchant accounts since merchants must process their bankcards with you to repay the advance.

These programs are red hot with restaurants, liquor stores and other retail merchants right now. If you do not offer a cash advance program to merchants, be sure that your competitors will.

Referred Me

Referrals will open more doors and close more deals than any other differentiator. When merchants must choose among strangers, the one who was referred to them has a huge advantage to win the business. A referral from someone the merchant knows is truly golden. Price and other competitive factors all take a back seat.

Knows Me

Networking is not only a good lead generator, but it is also a differentiator. If merchants know you through Kiwanis, Girl Scouts or Little League, they are more apt to buy from you than from those whom they have never met. If you are a regular customer, merchants will likely sign with you: "You scratch my back and I'll scratch yours." Get out there and network, network, network. I don't care if you like it or not, networking is good for your business.

Remember, every purchase is made based on some type of differentiator. Price is always the easiest sale to make, but it also pays the least. Be creative. Differentiate your sales offering and profit from it through increased sales and higher margins.

Ken Boekhaus is Vice President, Marketing and Business Development for Electronic Exchange Systems (EXS), a national provider of merchant processing solutions. Founded in 1991, EXS offers ISO partner programs, innovative pricing, a complete product line, monthly phone/Web-based training, quarterly seminars and, most of all, credibility. For more information, please visit EXS' Web site at www.exsprocessing.com or e-mail Boekhaus at kenb@exsprocessing.com .