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What is So Wrong with Selling on Price?

Guest post by: Todd Willard

Article Overview: Problems associated with selling on price.

What is So Wrong with Selling on Price?

     There is absolutely nothing wrong with "selling on price" unless you are concerned with the following items:

 - Giving away the store: sales professionals have a tendency to feel the only way they can close the deal is to lower the price to just below what the competition is offering your buyer. While we know it is tougher to make a sale based on "value" in today's economic times, we still need to pursue a "minimum amount" that is acceptable by both parties through earnest negotiations vs. giving into the buyer and reducing the potential revenue and margin gains by the company.

- The buyer departing: once a buyer has purchased a product or service based solely on price (and assuming a term contract has not been put in place), the second another offer comes around offering a better price - be prepared for the departure on behalf of the buyer. If the purchase is based solely on price, they will depart based solely on price.

- No "value" development: the potential for future business with this particular buyer has no value associated with it and therefore the chance for becoming a trusted advisor for future business is no longer a possibility. Some value creation needs to be established (even if the value identifier is you - the sales professional) for future opportunities.

- High maintenance: I don't know why, but it always seems that those buyer's, who demand to be sold based on price, end up being the highest maintenance accounts. Go figure! 

      If you want to continue to sell on price, feel free to do so. I hope that both you as a sales professional and your company will survive in the near future.

- Willard's Wisdom

 

 

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Article Tags: executive sales, sales, sales meetings, sales training, selling



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