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The Importance Of Price In The Sales Process

7 Steps To Pricing Within Sales

Pricing a product or service that you sell can be a scary experience and the following are common issues / challenges that many businesses come up against.

  1. Within the sales process I don’t know when to mention price
  2. I’m just not sure if my price is right
  3. When is it appropriate to offer a discount
  4. How can I maximise the performance of any discounts offered
  5. I put my proposal in to the prospect / customer and then nothing happens
  6. I really struggle to get the right price communicated within my proposals

If you struggle with any of the above then this 6 stage process may offer some guidance

The Importance Of Price In The Sales Process

Step 1: Preparation

  • Make sure that you know the full cost of your product or service. Its not good enough to just consider the product cost in isolation you need to know the complete set of costs associated with providing the product
  • Evaluate the product / service benefits that your proposition provides
  • Conduct detailed research into your competitors costs.
    • A short while ago we conducted research for a client on competitors. Two of the main competitors who were significantly undercutting on price were also making significant (what appeared unsustainable losses)
    • Conduct detailed analysis to identify market affordability
      • There is a huge amount of work required here to identify issues of customer value and importance (more about this in future articles)

Step 2: Introduction

  • The initial interaction. They always say you never get a second chance of first impressions. So if you are selling a premium service you need to create that impression. If you are selling a bargain basement, low quality buy adderall weight loss item perhaps this needs a different approach

Steps 3 & 4: Questioning and presenting

This can be summarised by the following 4 steps

  • Ask – you need to identify what are the issues / pains (metaphorically) that the customer is looking to resolve
  • Listen (very important to conduct in an active listening manner). The rationale of two ears and 1 mouth use them in that ratio is a very sound piece of advice
  • Interpret  – to make sure you have really understood what is being communicated
  • Solve – present what you would be a solution to the above three points

Step 5: Objection handling

It is often stated that there are two types of objections
True objections – whereby there is a completely valid reason for not being able to purchase. I would love to buy your double glazing but I live in a tent
False objections – which can occur for a number of reason

  • Perhaps the person has misunderstood you
  • They are used as a veil for misgivings
  • The person just wants more information
  • The great way to better evaluate these false objections is to ask more questions without assuming

Step 6: Closing

Often the best way to try and close the sale is to shut up

Step 7: Follow up

  • After the offer has been submitted. If they don’t want to purchase immediately as k the prospect when THEY would like you to contact them for a decision
  • After the order deliver the product or service EXACTLY as described

The Importance Of Price In The Sales Process

If you would like to find out more about the importance of pricing contact Andrew Goode an experienced business development professional. on 01733 361729 or e mail andrew@bdolphin.co.uk.  For more information on pricing and strategy click here

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