Have you yet wearied of sales people asking you, the sales manager, to discount a price with no specific reasoning behind the request? Are margins slipping?
“I had to cut the price to get the order”. I hear this from client’s sales teams all the time. Rather than actually selling, they’re clerking by offering discounts. If you’re discounting, there should be a reason. Yet many of them start with quoting a price, and then suggesting “Let me see what kind of discount I can get for you.”
Read this paraphrased poem from 19th century (think about that, 19th century) writer, John Ruskin herein titled, “What Is Price?”
“It is unwise to pay too much but,
It is unwise to pay too little.
When you pay too much you lose a little money – that is all.
When you pay too little you lose everything – because the thing you bought was incapable of doing the thing you bought it to do.
…If you deal with the lowest bidder it is well to add something for the risk you run.
And if you do that…
You will have enough to pay for something better.”
Is this 19th century quote still valid? Not sure?
Of course it is!
Ask yourself, what is your value proposition and are your customers willing to pay for it? If not, why?
Remember: In the absence of perceived value, the determining factor is…price.
Your value to your customers is your knowledge and ability to serve them like no one else. You (hopefully) have a brilliant sales team, people who have forgotten more about your products and craft than most of your customers will ever learn. People that WANT to succeed while looking out for the customer/client’s best interests.
You’re able to provide complete, total solutions when customers or clients come in asking for a specific piece of the solution, perhaps thinking “that’s all I need to fix ______” More often than not, even the most informed customer/client doesn’t know what they don’t know. It’s the salesperson’s job to remedy this lack of information, even if it means the customer doesn’t purchase from your company.
If you’re honest and compelled to provide ‘all the right stuff’ to your customers so that they don’t find themselves out on projects missing parts, extra batteries, all the accessories to make the project, activity, endeavor purr, swing, hum, or fly right, that will not only make them happy, but let them know you care for them, their project, and want to be their total solutions provider.