Sunday, December 21, 2008

Price Discounting Will Force You to Have to Sell More

I was over on Karl Goldfield's Sales Evangelist Blog this weekend, and discovered a great post titled - "Sales Process - Next Year, The Best Story Wins". If you get a chance, please check his post out. He also got my wheels turning on his discussion of how we as salespeople should not offer massive price discounting for a variety of reasons.

One of my main reasons for not offering massive price discounting is because this forces us to have to sell more to make our quotas. For most of us in sales, it is when we go over our quota that the real monetary incentives take hold. For every unnecessary dollar we give up on price, we have to make it up with another sale down the line. In other words, this not only hurts our gross profit numbers but also hits us hard in the volume equation - which is the #1 area most salespeople get paid for.

My main point here is simple. Developing the necessary skills to preserve margins and to get "price" will allow you to grow sales at a faster pace. As 09' approaches, all of us need to think real hard about whether we should be giving away price unnecessarily. After all, by offering massive price discounting we end up hurting ourselves more than anyone else. "Work Less - Sell More" should be the rule and not the exception for top producing salespeople.

2 comments:

Shaun said...

Karl certainly does have some great contributions to make. Sales Gravy, (another Karl contributes to) and Sales Caffeine (Jeffrey Gitomer) are also blogs I've been looking onto.

Solid blog here too from what I've seen thus far.

The only question I'd like to ask would be the extent to which one should hold to a particular system (or systems) for selling. To lay my cards on the table, my current attitude prevails that if you take time to master one, you'll be more successful.

Others I'm sure will say many different things. I don't expect there will be a lot of people committing themselves on this on though... or will there? :)

From the Author: Will Fultz said...

Shaun,

You have asked a really good question here.

In my estimation, however, it is the commitment to the pursuit of a goal that trumps everything. One who has the desire of success burning inside of them, will have superior results to those who rely on a system or a collection of systems. That being said, those who have the desire will seek out and conquer new techniques to get them to the top.

If you stuck a gun to my head, I would say using one system to the fullest extent would be your best bet. Simplicity can be very nice indeed. It is when we are bouncing all over the place that things go off course. However, the judgment and creativity that a good salesperson develops should never be check at the door.

Thanks for you comment...

Will Fultz