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 Anonymous 2013-06-21 at 10:22:43 am Views: 119
  • #1985

    Are Your Prices Too High?! or Is Your Perceived Value Too Low?!

    In today's World, many products and services are becoming more and more commoditized. This drive towards commoditization is causing many salespeople to miss the mark when negotiating pricing. All too often, margins are crushed, if not totally eliminated, as a result of sales teams stressing the product or service that they sell as opposed to the results that their product or service can produce.

    Make sure that all of your prospects clearly understand that, when they do business with your organization, they get much more than just a product or service delivery. They need to understand that your company's product, even though it may be viewed as a commodity, has more value than a similar product offered by your competition due to the fact that you, your team, and your organization are backing the product.

    The concept that drives this notion is very simple. For instance, regardless of how good your product may or may not be, it has little value if it cannot be delivered on time, billed correctly, and supported professionally by your teammates. When you sell, you must stress the three P's: people (you and your coworkers), products, and procedures (the procedures that produce results). Without a combination of the three P's, it is impossible for your customer to get the thing that they actually want… results.

    When you stress the results and communicate that your results are better than the results offered by your competition because of the people and procedures that you utilize, you will be able to command slightly higher margins than your competition. Keep in mind that your customers always want results and you will sell more.

    * Post was edited: 2004-08-19 15:31:00