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06 2012

Dealing with the Price Factor

Syndicated from: Fearless Selling » Blog

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 new economy as well and many sellers 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: 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 factor is a seller’s inability to demonstrate the value of their product versus a competitors and the reason this happens is that they did not properly position their offering. When a buyer demands a significant discount you need to carefully consider your response. I know many people who will accept a less-than-favorable deal, just to get their foot in the door. However, it is essential to recognize that your actions today will influence a person’s behaviour in subsequent sales calls. If you give that buyer a 15% discount today just to get the 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 here: I. You cannot control your competition. Regardless of what you sell and to whom, there will always be someone who can sell the same or similar product or service for less money. You can’t compete with everyone. II. 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. On a side note, I have a negotiating program on my website that covers just about everything you need to negotiate more effectively. It’s called Negotiate Like a Pro and you can find it here. I’ll close this post by saying that sales people who keep their pipeline 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 lightly filled pipeline, places more pressure on you to close every sale which means you are more susceptible to price demands. I have even more ideas to help you increase your sales in my latest audio program “Make 2012 Your Best Year Ever.” It’s available as an MP3 download and you can get it here.  

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