All sales people will walk straight into the Price Trap at one time or another.
On reflection, most sales people will know what they should have done to avoid it….but does that improve their performance next time? Rarely, in my experience, and this is why.
A sales person is chasing a sale, a signature, an offer, a commitment, a chance to say I won.
Relatively few sales people, especially where they have been given the freedom to price competitively, will have a firm commitment to a price they quote.
The intention when quoting is to produce an initial price where they believe a comfortable negotiation will get the sales person and the buyer to an acceptable agreed point.
Maximising margin, driving profit, using pricing as a positive rarely come into it from the sales persons point of view.
Getting a ‘yes’ is more important and visible than getting a ‘profitable yes’…and this is even more true the longer the sales negotiation or sales cycle.
Yes, that’s correct, the sales person is more likely to lower the price the longer the negotiation goes on…..so the cost of the sale is increasing, yet the price is diminishing….does this sound familiar?
As a manager you may have a sales person justify it with…’well I just wanted to get it off my forecast and billed’ or ‘the buyer was never going to make a decision so I just offered him a deal to close today’….
And if that’s not bad enough – the sales person is also rewarding bad buyer behaviour, so what does the buyer learn to do…..I’m sure you know where this is going….
Is this wrong? Well, it is one of many pricing strategies that may be employed. My concern is when this way of pricing and quoting is the only technique used by the sales person to price their product or service.
Just last Friday I was with a sales team where the main sales pricing method used was to ask what the budget was and then price their service within a small margin of the budget….did it mean they got every sale? Certainly not….in fact their conversion rate of 1 deal closed in 6 was a sad reflection on how this method actually works against the sales person.
Instead, using alternative pricing strategies, sales methods and sales presentation styles, sales people can learn how to
- Quote with confidence
- Increase close rates
- Build credibility using knowledge and price
- Maximise profits
- Kill the competitors pitch…professionally
- Hit sales target with fewer orders
If you want to enjoy these benefits and take control of your pricing and closing rates, then join Morton Kyle Limited in Sheffield on Thursday 6th June 2013 at the next Pricing Workshop ‘ Quoting with Confidence – Increase Profit and Close Rates’
Who Should Attend?
- Anyone in a sales role who wants higher monthly revenues, less hassle about price, shorter sales cycles and a higher close rate
- Sales professionals who feel that their prospects are failing to fully understand the value associated with the product
- Sales people who would like to earn more commission
- Sales people who know what they should be doing but get trapped in old pricing behaviours
- Sales Managers who want to be able to train their sales team in how to get the price they need
Having attended this Pricing Training Course you will be immediately able to:
- Talk with your prospects about price without fearing their rejection
- Build a solid case for your price
- Compare your offering to that of your competitors and always come out positively on a pricing basis
- Appear as an industry and business professional and not just as a sales representative
If you are looking for a sales performance improvement course to change your sales forecast immediately, come and join us in Sheffield on the 6th June.
Course cost: £395 per attendee, 2nd and subsequent attendees from the same company £250. Plus VAT
Includes: Lunch and full notes
For more information or a confidential chat about the specific needs of your sales team call Carol on 0779 002 1885 or email firstname.lastname@example.org
Carol Griffiths – Lead Consultant and Director
Morton Kyle Limited
0779 002 1885