Sales Audit · Sales Consultancy · Sales Recruitment · Sales Strategy · Sales Training

Reducing Prices to Boost Sales? Don’t Do it!!!

Sales is a very simple concept…the skill is to find those prospects that may, at some point,  display a propensity to buy a certain service or product you are offering; and, depending on where they are in their potential buying process will dictate the how they are dealt with by the sales person.

Propensity to buy – this can cover all manner of prospects and circumstances;  and therefore needs fine tuning, and that is where the real selling comes in. Ask yourself these questions…

  • Can I demonstrate sufficient value in what I am offering to encourage this prospect to seriously look at purchasing within a given time frame?
  • Is this prospect and/or their organisation likely to see a  demonstrable return on investment or benefit from taking this product or service in a given time frame?
  • Are there any external drivers that will compel the prospect to seriously look at this product or service?

Obviously, it would be remiss not to consider:

  • Do they have the budget?
  • Are they the decision maker?

But, I’m assuming that’s the starting point for many sales professionals out there.

Sales gets complicated when desperation sets in. The sales cycle is just that, a cycle. Prospects will buy when they are ready to buy. The role of the sales person is to furnish them with the correct information and to make the buying decision and process easy, to stay close and to be available to act when the time is right and the order is placed.

Desperate sales people are the ones that go out to close every prospect NOW.

In itself this is not a bad thing, however most commonly used closing technique for a desperate or failing sales person is to sell on price…to sell cheap…not occasionally using price to assist the prospect’s decision making, but all the time.

This doesn’t work…for lots of reasons….

  • Once the lower price has been discussed, that’s the price whenever the prospect is ready to buy, it is unlikely they will ever pay a higher price
  • The techniques used with the low price close leave the sales person nowhere else to go, it’s a one punch trick, as going back in order to try to create value after a rock bottom price has been offered will not be tolerated.
  • The sales person has just declared their hand..and it’s weak

But worst still…Selling cheap, or trying to, in order to get a sale today is the fastest way to corrupt the sales pipeline.

The sales person that sells cheap will have a very poor quality, low margin pipeline at best…more likely their sales pipeline will be non-existent, a fabrication, a sales wish list.

Selling cheap is never the option, not just because it corrupts the sales pitch, devalues the offering, reduces margin, ruins company branding…it corrupts the sales pipeline, it robs the sales funnel and the sales forecast is likely to be a fairy story.

Selling cheap is a major fail.

If you would like to explore how increasing your prices and creating value in your sales pitches could help your team hit higher revenues and margins, then please call for a confidential chat.

Happy Selling

Carol Griffiths – Lead Consultant and Director

Morton Kyle Limited

carol@mortonkyle.com

0779 002 1885

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s