In sales, it is very easy to determine when we win and when we lose. When we make the sale, we win, when we don’t make the sale, we lose. In selling situations when sales are lost, it is most commonly due to price. It can either be that we feel our price is too high, or the customer feels the price is to high because we have not created enough value in what we are selling. The easy way out, and the lazy approach is to simply blame our pricing and lower it. It is much easier to lower price than it is to build value in what we do and what we sell. However, lowering price is ultimately not the best decision for anyone.
When prices are lowered, it usually means that the sales person is losing money due to lowered commissions. When sales people start losing income, they can become very negative and they can begin to lose their passion. When this happens, sales people either leave the company voluntarily, or they are asked to leave to due poor performance. This causes a very high turnover rate within an organization, and the company starts losing money. The next thing you know, the company starts taking short cuts and cutting corners to make up for excessive turnover costs and lost revenues, and now quality control is shot. Many think that lowering price is good for clients due to the fact that clients will be spending less money and they will be saving money, and saving money is always a good thing, right? Wrong! Saving money may sound great to clients in the short term. However, lowering prices is never the best answer for the long haul…for anyone!
As Executives, Management Teams, and Sales Professionals, we need to be building value in what we do and what we sell. Building value is being magnetic, being passionate about what we are doing, as Stephen Covey said “seeking to understand and then to be understood”, digging deep to find out what really motivates and inspires people by finding their “real wants and their real needs”, leading people to make good sound decisions, truly educating people in a consultative way, and making people feel that what you have sell is worth more to them than the money they have in their hands. Where we often times get confused is when we think that clients want “the best price”. The vast majority of clients do not necessarily want “the best price”, they want “the best value”! Clients don’t want “cheap”, they want “quality and value”. It is our job as sales people to not only build the value in what we do and what we sell, but also to inspire and lead others to appreciate that value. In sales, we have to believe there is tremendous value in what we are selling. If you don’t greatly value what you are selling, no one else will. However, if you do value what you are selling, don’t de-value yourself, your company, or your product by lowering prices. Use your passion, your enthusiasm and your influence to get others to see that value just as you do.
-The Sales Leader