Friday, June 3, 2011

Fud Buster Friday #53: Price Matters


Every sales person, at one time or another, will tell you this if you are their manager.

Bad sales managers accept it and allow for negotiations.
Average sales managers stress a give and get return. Lower the price, but lower the benefits.
Great sales managers provide benefits, ROI and don't argue about the physical item price.

Training and common sense is everything. But price is not.

Yes, if I want to buy a commodity, but software and it's ancillary services are not a commodity today. Email may be a commodity, but at what point do you drop the corporate walls to use any Web 2.0 service because it is free? In some cases, never.

I hear about deals that never get done because of price. I hear about special bids and all types of crazy offers. Do they entice some people, sure, just like Groupon coupons. But the downside of Groupon, as the advertisers, is it can be a losing proposition. A short term gain but only in quantity, rarely in sales and does not feed a pipeline of future buyers. It is of course great for Groupon because the consumer comes back for more deals. But for the supplier or advertiser, be careful.

Corporates don't have a Groupon...yet. No doubt some sites are out there like it. I don't consider retail or wholesale sites or stores to be like Groupon but the argument could be made.

When push comes to shove, the money is there usually for what the company NEEDS not what they want or is nice to have which means you should focus on this point. This is the key to remember in sales, competitive discussions and interviews. What the company needs from you and your solution is to gain the future they want for themselves. Help them see themselves in that future with you or your solution and the money is there every time.

Just don't give it all away every time and belittle you or your solution