For some reason, salespeople are quick to believe that somehow cutting a price is not going to impact their company much. Big mistake! When we cut a price to secure a sale, two big mistakes are being made.
The first mistake is the loss of profit. Unless there is something removed from what is being sold, any reduction in price comes right out of profit. No company can operate very long without making a profit. It’s like asking an employee to work without being paid. The idea is simply not sustainable.
The second mistake is the customer receiving the discounted price will now view the lower price as the price point. Any attempt later on by the salesperson to get the price back to the regular price will be viewed by the customer as a price increase. Too often I see a discounted price given in order to close the first sale and in the end, it becomes the long-term price.
Discounting a price can occur for a couple reasons. Failure of the salesperson to create a significant outcome for the customer is one reason. And often, if the salesperson lacks confidence, you see a discounted price. When you combine these together, it becomes a toxic combination of lost profit.
The confidence you have as a salesperson going into a sale will determine the level of profit you make because of the sale.
In my book, High-Profit Selling: Win the Sale Without Compromising on Price, I talk a lot about this issue. If you have not read my book, High-Profit Selling, I strongly suggest you get a copy today.
Right now you can grab a Kindle copy of the book High-Profit Selling for only $2.99. This is a special offer for the month of April only. Once April is over, so is the low price.
Give it a read and let me know how it helps you and your company. I know it will!
Copyright 2019, Mark Hunter “The Sales Hunter.” Sales Motivation Blog. Mark Hunter is the author of High-Profit Prospecting: Powerful Strategies to Find the Best Leads and Drive Breakthrough Sales Results