Don’t blame your Salespeople for discounts, do your homework first!

11. September 2013

If you want to reduce discounting, and that way increase your margins, address four issues:

  1. price fairly,
  2. communicate value,
  3. build confidence
  4. offer negotiation training.

To me the central point is no. 2, value. Customers make choices between our own and our competitors’ products. In order to outsell, we MUST communicate why our product is better. We MUST translate features into customer benefits and communicate those benefits „in terms of financial and emotional well being“. If we haven’t delivered the tools to sales to help them communicate our value, then how can we expect them to do this well?

To think about value seriously and self-critical will lead you to fair pricing. And both, new value stories as well as a new pricing system, requires training. Your sales people, equipped with better selling arguments that are based on real customer benefit and well trained, will grow in confidence.

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