Do you need Salespeople?

23. Juni 2017

At what point should you mention your price? As Mark Stiving puts it, the correct answer is “it depends.”

However, if there is one guideline on this topic it is this: Communicate price only after value is understood.

In most B2C sales situations customers see the price of the product immediately. Consumers often already know the product, the brand and the quality – and decide if the price is worth it. In automobile-sales though, it is a negotiated deal. The (good) salesperson doesn’t just quote you their best price. Instead, he will try to figure out how much you are willing to pay.

This same thinking transfers to B2B pricing as well. In B2B sales we often use direct salespeople. The most important role of a direct salesperson is to communicate the value of a product to the buyer.

If we can lead with price, we don’t need a direct salesperson.

If you agree with that, your salespeople have to listen to their customers first, and then communicate value to the buyer. Only after that, they should quote prices. If you sell a product where the value is already known—think office supplies—the price can be delivered right away. In all other cases: never lead with price! Or as Mark says: „When a salesperson leads with price, either we have scared a customer away or we have a price that’s too low. If we can lead with price and don’t scare the customer, … we don’t need a direct salesperson … .

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