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.