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Sales-Meeting-Minute

Before you cut your price

When you cut a deal to get the business there are consequences. How far are you willing to go to close a sale? More importantly, have you debriefed what led you to drop your price in the negotiation? Was it worth it?

Before you let price be the deciding factor of a sale again, review the facts about cutting prices.

When you cut prices by...

5%                       You must sell: 25% more merchandise

                            You must do: 18% more dollar volume

 

8%                       You must sell: 47% more merchandise

                            You must do: 35% more dollar volume

 

10%                      You must sell: 66% more merchandise

                             You must do: 50% more dollar volume

 

12%                      You must sell: 92% more merchandise

                             You must do: 69% more dollar volume

 

15%                      You must sell: 150% more merchandise

                             You must do: 112% more dollar volume

 

20%                      You must sell: 400% more merchandise

                             You must do: 300% more dollar volume

 

How much is it costing you on an annual basis by needlessly cutting the price to get the deal? How often do you give in on price in order to close a sale?

If you found these statistics troubling, what will you do to make sure you're not cutting deals to make sales in the future?

 

Copyright 2014 Sandler Training and Insight Sales Consulting Inc. All rights reserved.

John Glennon is the owner of Insight Sales Consulting Inc, the authorized Sandler Training Licensee for the Interior of British Columbia. He can be reached at [email protected] toll free at 1-866-645-2047 or www.glennon.sandler.com.

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.



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About the Author

John Glennon is an authorized licensee of Sandler TrainingSM in the Interior of British Columbia.

John is an accomplished sales person and manager with over 17 years sales and sales management experience. Beginning in sales in 1990 as a sales representative, he progressed to territory manager, sales manager, division manager and national sales and marketing manager roles throughout his career.

In 1997, John became a student of the Sandler Selling System. This introduction changed his sales career and over time propelled John and his career to new heights.

Successful in accelerating growth through strategic leadership, John knows firsthand the value of a sales training approach that follows a learning philosophy of ongoing reinforcement. He is experienced in driving the behaviours, attitudes and techniques required of an effective sales team.

Sandler Training is offered on a regular basis from their Kelowna, BC training center and through innovative distance learning programs to the rest of the BC Interior.

www.glennon.sandler.com




[email protected]
1-866-645-2047



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The views expressed are strictly those of the author and not necessarily those of Castanet. Castanet does not warrant the contents.

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