Have you built a pricing plan based merely on your costs?
Or have you built a plan that genuinely reflects the value and desired outcomes your customers gain?
There’s a big difference!
I never cease to be amazed at the companies that become more consumed with having a price that is slightly lower than their competition than they are with having a price that is all about the outcomes the customer will gain.
There are no shortcuts to a solid pricing plan.
And when you focus on the value you bring to the customer, you begin to see that price actually becomes a secondary issue.
This isn’t about gouging the customer by charging an unrealistic price. Far from it! What it’s about is recognizing what you offer is worth full price.
Why is it so important to have a solid pricing plan and stick to it? A couple of reasons:
1. You protect profit.
If you get in a mindset that you can’t close a sale without discounting, you will consistently be shortchanging yourself on profit. You may think you’ll make up for this lost profit through quantity (more sales at a lower price). In the short-term and the long-term, though, such numbers will paint a different story. And that story will be a sad one about all the profit you left on the table because you didn’t have a solid pricing plan.
2. You attract full-price customers.
You do not want the customers who are focused solely on getting you to drop your price as far as possible. You want the customers with whom you have spent time demonstrating the value of what you offer. Focus on their desired outcomes and how your product/service meets those.
3. You discipline yourself to keep your selling skills sharp.
If you always fall back on offering a discount in order to close a sale, you have less motivation to strengthen your selling skills. Discounting should be your nemesis, avoided whenever possible. Too many salespeople have made discounting their super hero… the “go to” alternative to getting out of a difficult situation. A better approach is to have a solid pricing plan and strengthen your skills to sell according to that plan.
Shortcuts may be a good idea when trying to shave time off your commute to work. But they won’t do anything to help you succeed phenomenally in sales.
Copyright 2013, Mark Hunter “The Sales Hunter.” Sales Motivation Blog.