Tweet

Differentiating Pricing Strategy From Selling Strategy

Written by: Dave Kurlan

Article Overview: Let's differentiate between this very sound pricing strategy yet unsound selling strategy. From a pricing perspective, this strategy allows you to effectively position your company, brand, products and services wherever you need them to be, based on markets, competition, reputation, quality and business strategy. However, from a selling perspective, never provide your prospect with even two, let alone three options. It's difficult enough to close business in a timely manner today and you certainly don't want to be the cause of a decision making delay.

Differentiating Pricing Strategy From Selling Strategy

Do you subscribe to Verne's Insights - 10 Minutes with the Growth Guy - Verne Harnish? You should. It's the best newsletter I get - one I actually read each week! In today's issue Verne wrote that his favorite quote from last week's Sales & Marketing Summit was Mark Burton's, "Discounting is the crack cocaine for business today". He also shared that "instead, Burton says companies can use a 'good, better, best' strategy to provide various pricing levels without simply giving away margin." Wait a minute!!!

Let's differentiate between this very sound pricing strategy yet unsound selling strategy. From a pricing perspective, this strategy allows you to effectively position your company, brand, products and services wherever you need them to be, based on markets, competition, reputation, quality and business strategy.

However, from a selling perspective, never provide your prospect with even two, let alone three options. It's difficult enough to close business in a timely manner today and you certainly don't want to be the cause of a decision making delay.

Let's assume that your salespeople have identified the compelling reasons why their prospect would buy, and buy from you, rather than your competition. Let's assume they have also positioned themselves as experts, established value, and learned how much their prospect will spend to solve their problem. It is only then that your salespeople will present both a needs and cost appropriate solution. If they have effectively met each of the above criteria, then in their expert opinion, there can only be a single ideal solution that is both needs and cost appropriate. More than one and they didn't listen effectively. More than one and they may appear uncertain. More than one and they have provided their prospect a reason to think it over. Less isn't more, one is more.

Price with options, sell with certainty.

Related Articles
  Dell Resorts to Questionable Sales Tactics to Drive Revenue
  Small Business Coach - Do Your Pricing Strategies Maximize Your Profits?
  Price The Direct Link to Your Bottom Line
  Selling on eBay: Can You Increase Sales with a Low Opening Bid Pricing Strategy?
  Pricing Your Products and Services for Ultimate Growth

Article Tags: amp, appropriate solution, business strategy, business today, ceo, crack cocaine, favorite quote, guru, insights, mark burton, marketing, masters, perspective, reputation quality, s sales, salespeople, summit, target, timely manner



Related Forum Posts
Book: Secrets of Six Figure Women - Secrets of Six Figure Women: Surprising Strategies to up your earning and change your life Barbara Stanny, 2002 Jacket: Maybe you've noticed - a subtle trend is gathering steam. Quietly and steadily, the number of women making six figures or more is increasing, and it continues to rise at a rate faster than for men. From entrepreneurs to corporate executives, from white collar executives to free lancers and part timers, women are forging careers with considerable financial success. Through extensive research and hundreds of interviews, including dialogs with more than 150 high earners whose annual incomes range from $100,000 to 7 million, Stanny discovered that ...they all had certain traits in common: 1) a profit motive 2) Audacity 3) REslience 4) Encouragement 5) Self-awareness 6) Non-attachment 7) Financial knowhow She amplifies on these in the book itself. Table of Contents Intro: Welcome to the era of the six-figure woman 1. The Queen in the Countinghouse 2. The Lowdown on low earners 3. Raising the bar 4. Strategy 1: The Declaration of Intention 5. Strategy 2: Letting go of the ledge 6. Strategy 3: Get in the Game 7. Strategy 4: Speak Up 8. Strategy 5: The Stretch 9. Strategy 6: Seek Support 10. Strategy 7: Obey the rules of money 11. Claiming our power Appendces: Resources and websites Tips for getting out of dent Investing Basics: Wealthbuilding 101
Re: What can you do if your franchise is hit by a scandal? - GT - Brilliant Strategy... What can I add? I'm at a loss for words...so I'll shut up now...
Introducing a Learner - Hi everybody, It is really my pleasure being around so many Entrepreneurs and strategic minds. Strategy is something I always loved and eager over every new move. Being a newbie I would need your support and I hope I would get that. Thanks Stephen
Re: Kevin's Case Study #6 - Marketing an information resource? - "Blue Ocean Strategy" sounds like an interesting concept.... Anyone here care to share more on it?
Favourite Business Books - The November PROFIT magazine looks at the favourite business books of Canada's most successful entrepreneurs. The top 4 are: 1) Good to Great by Jim Collins 2) The E-Myth by Michael Gerber 3) Blue Ocean Strategy by W. Chan Kim and Renee Mauborgne 4) How to Win Friends and Influence People by Dale Carnegie


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Tweet

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Resistance to Change and How to Deal With It

4 Steps To Hypnotize Your Business Prospects

9 tips to increase ROI in PPC Campaigns

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.