Entries tagged with “price”.
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Posted by Susan A. Enns under Sales Management Skills
Experience has shown no matter where you set your minimum selling price, a sales representative sooner or later will ask you to lower it. The question is not whether you will be asked permission to discount; the question is when should you say yes.
One of the best examples of this is highlighted in an excellent article “Making Sales and Losing Money” by Brian Jeffrey. The article highlights a case where a sales rep, after obtaining his largest order to date, actually loses money on the sale. Not only does Brian discuss how this could easily happen, he also discusses excellent ideas on how you can prevent it from happening to you. You can read the article at http://ow.ly/27HXi.
Your company’s fixed costs must be paid whether you make the sale or not. Therefore, any time a discounted selling price contributes at least one dollar towards paying your fixed costs, it is considered profitable. As long as all of your variable costs are covered, including the cost of the goods sold plus any variable sales commissions, the discounted price can be accepted.
The Minimum Selling Price Calculation Worksheet available for sale in our eStore will automatically calculate a product’s minimum selling price to contribute at least one dollar towards the payment of fixed costs, given the cost of goods sold and the commissions to be paid on the sale.
As most managers would agree that making a sale for only a dollar is hardly worth the effort, the spreadsheet also shows how much gross profit is being made if you sell the product at a certain price.
Aim Higher!
Need ideas for your sales meetings? Join our free webinar where we discuss quick and easy ways to make your sales meetings more interesting and productive. To register, visit www.b2bsalesconnections.com/webinars.php.
Webinar does fit your schedule? View the presentation video in our Download Centre at www.b2bsalesconnections.com/download_centre.php. While you are there, be sure to download a free copy of our white paper “Creating Your Unique Value Proposition”
Susan A. Enns, B2B Sales Connections
www.b2bsalesconnections.com, www.linkedin.com/in/susanenns, or www.twitter.com/susanenns
Posted by Susan A. Enns under Quick Sales Tips
If you sell a simple or transactional product where the customer can make the buying decision very quickly, don’t write the price on a brochure when the prospect asks for a quotation. Write the price on an order form instead. Not only will this give the prospect the information he has requested, but it will save a lot of time because the sale will close much more quickly.
Aim Higher!
Susan A. Enns, B2B Sales Connections
www.b2bsalesconnections.com, www.linkedin.com/in/susanenns, or www.twitter.com/SusanEnns
Posted by Susan A. Enns under Quick Sales Tips
How do you tell your prospect your price? If you add adjectives like “our usual price”, “the suggested list price”, or “our regular price”, you are actually inviting the prospect to negotiate and ask for a lower price. Instead, try “the price is” and simply state the fact.
Aim Higher!
Susan A. Enns, B2B Sales Connections
www.b2bsalesconnections.com, www.twitter.com/SusanEnns, or www.linkedin.com/in/susanenns
Posted by Susan A. Enns under Sales Quotes
“Your competition does not cut your price, you do.” – Lawrence L. Steinmetz & William T. Brooks
Aim Higher!
Susan A. Enns, B2B Sales Connections
www.b2bsalesconnections.com, www.twitter.com/SusanEnns, or www.linkedin.com/in/susanenns
Posted by Susan A. Enns under Sales Skills
Are you always asked to lower your price? Does every prospect start to negotiate with you? Most sales people would answer with a very definitive yes!
Of course we all face this! The reason is that consumers and buyers are trained to ask for a lower price, no matter what. Think about it. Would you walk into a car dealership and pay the price listed on the windshield? Probably not. Don’t be surprised if you are asked to negotiate to a lower price, expect it. What you can do, however, is change the way you handle it. You do not have to lower your price if you follow some basic principals. (more…)
Posted by Susan A. Enns under Sales Quotes
“When was the last time you heard the demand: Get me the cheapest brain surgeon you can find!” – Alan Weiss
Aim Higher!
Susan A. Enns, B2B Sales Connections
www.b2bsalesconnections.com or www.linkedin.com/in/susanenns.
Posted by Susan A. Enns under Sales Quotes
“The bitterness of poor quality lives long after the sweetness of the lowest price.” – Author Unknown
Aim Higher!
Susan A. Enns, B2B Sales Connections
www.b2bsalesconnections.com
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