No business is immune against "commoditization".
Buyers are measured by costs reduction while (weaker) sales people leverage on price discounts to achieve revenue goals - particularly when their commission is at risk (usually by the end of the quarter).
Professional buyers exploit it too. Even if not ready to place an order, they might "negotiate" an order - only as a starting point for an eventual future price negotiation.
This can be avoided by VALUE SELLING training - part of our SALES ENGINEERING & CRM PROGRAM, which include among others: testing techniques of readiness to place an order, avoiding multiple price negotiations with non decision makers, just to mention a few....
Volume never compensates for price discounts.
SHOW ME YOUR GROSS PROFIT, AND I'LL TELL YOU HOW WELL YOU SELL VALUE
1. Remember: customers do not buy on price only, unless you consent to it
2. Improve your Value Selling skills: as price pressure grows, learning how to sell value becomes a surviving skill.
3. Add Gross Profit to your KPI (Key Performance Indicators): if you use a CRM, embed it on the pipeline dashboards graphs.
4. Monitor gross margin performance of your sales force as an indicator of "VALUE SELLING" training needs.
5. Automate a discount authorization workflow in your CRM
CRM (Customer Relation Management) enables managing your sales and marketing processes. Beside being a useful technology, adopting CRM implicates changes in the sales management culture, as it drives sales from an "art" to a discipline.
Important: A. Bergman Ltd. does not represent CRM vendors to allow unbiased advisory services
Learn more on SALES ENGINEERING & CRM PROGRAM: call (Israel) 09-9502066 to schedule a meeting
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