Today’s topic focuses on a sensitive issue but one that causes many sales professionals a world of grief: price. If you want to increase your sales in the upcoming year you must learn how to deal with price issues.
Price has become more of a factor in today’s economy and many salespeople are under increasing pressure to offer substantial discounts or major concessions in order to capture a sale. There are a few things to consider here:
Price not the primary factor
Although price is a factor in every sale, it is seldom the primary factor (even when the prospect says it is). One of the most common reasons price plays such a large role is a salesperson’s inability to demonstrate the value of his product versus a competitor’s. And the reason is that the salesperson has not properly positioned his offering.
When a buyer demands a significant discount, you need to carefully consider your response. I know many salespeople who will accept a less-than-favorable deal just to get in the door. However, it is essential to recognize that your actions today will influence a person’s behavior in subsequent sales interactions. If you give buyers a 15-percent discount today just to get their business, then they will expect that and more the next time.
I suspect that you may have some challenges with predatory pricing from some of your competitors. It is critical to remember two things:
- You cannot control your competition. Regardless of what you sell and to whom you sell it, there will always be someone who can sell the same or similar product or service for less money. You can’t compete with everyone.
- If you play the price war you will likely get hurt. Unless you are already a low-priced supplier, you probably can’t afford to substantially drop your prices. Otherwise, your profit margins will take a beating.
Salespeople who keep their pipelines full tend to have less of an issue with aggressive demands simply because they know there will always be someone else to sell to. However, a slightly filled pipeline places more pressure on you to close every sale, which means you are more susceptible to price demands.
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Kelley Robertson helps sales professionals master their sales conversations so they can win more business at higher profits. Get a free copy of “100 Ways to Increase Your Sales” and “Sales Blunders That Cost You Money” at http://www.Fearless-Selling.ca.