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 Grabbed by the Ghoulies Xbox Halloween Special Sale Price Complete Game $9.98 Time Remaining: 15d 12h 4m Buy It Now for only: $9.98 |
 SALE Osu Tatake Ouendan 2 Nintendo DS Lite LOW PRICE $39.99 Time Remaining: 11d 17h 59m Buy It Now for only: $39.99 |
 SALE Osu Tatake Ouendan 2 Nintendo DS Lite LOW PRICE $39.99 Time Remaining: 23d 18h 32m Buy It Now for only: $39.99 |
Priced Sale
Best Sales Price or Biggest Profit Margin?
With so many companies paying commissions as a percentage of gross margin, it's tempting to quote full price - or at least a very high price - when writing proposals. You'll certainly make the biggest commission this way, but the question begs: will you lose too many sales on price to make it worthwhile?
If you've read my materials before, you know that I am very blunt about speaking the truth, and the truth is that price matters. Lots of sales trainers seem to be in total denial of this fact, and a lot of managers too, who just happen to be paid on profit margin. They insist that if you're a good salesperson, you can sell everything at full price. But in the real world, price matters. Period.
Even when using the powerful profit justification techniques I teach, if your price is out of line, it's out of line. Your prospect will take your profit-justified proposal and ask a competitor to provide the same solution at a better price.
As usual, this topic came to mind due to a real life experience that happened to me. It was a conversation yesterday with a friend who happened to be the prospect of a salesperson trying to make a full-price sale. The moment she objected to the price, the salesperson immediately offered a lower price. A much lower price.
Her reaction? She was insulted - infuriated - that the sales rep tried to pull one over on her. She rightfully felt that his intent was to get as much money as he could out of the sale. When the sale was in jeopardy, he instantly dropped his price. After all, getting less money is still better than getting none.
I feel the same way when a salesperson marks up a price in an attempt to make easy money off of me. I'm not stupid, and I take it as an insult to my intelligence when it happens.
When I was selling based on margin, I gave a fair price up front and stuck with it. I told the prospect flat-out that my price was my best price and it could not come down any more. I explained that I feel it's unethical not to give my best price up-front because anything else would be an attempt to rip the prospect off. Prospects identified with this and appreciated my honesty and frankness. I got lots of sales this way.
In addition to angering prospects, quoting your full price will also cause you to lose more sales than you know. Prospects will consider your quote to be "out of the ballpark" and assume that even if you can negotiate, you still won't be within their budget, and as a result they won't return your calls when try to offer that lower price. Quoting a fair price up front gives you a much better shot at the sale.
Having said all this, quoting a fair price doesn't mean giving your maximum discount on every proposal. Find the right balance where your price is fair and competitive but where you're still making a good commission. If your proposals are within that range, you'll win plenty of sales and have a generous commission check to show for them!
About the Author
Frank Rumbauskas, the New York Times best-selling author who revolutionized selling, has taught tens of thousands of salespeople and small business owners how to stop cold calling forever! For 10 free chapters of Frank's breakthrough book, please visit http://www.nevercoldcall.com.
Does any one have a good priced yard sale on Millsberry?
People have crazy prices I just need 100-1000 millsberry bucks or whatever they are called.Please leave your address if you have good prices thank you
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I haven't went on that forever... but here's the username. I should have stuff in my yard sale. I always have great prices for stuff. Like I had a robot thing (i forget what they are called) it is 20,000 mb in stores and I put it in my yard sale for 10,000. People put prices up too high because they are too lazy to play the games. Either that or they are little kids and they have no idea what to do or something. Ok, my username is kittykatky. It's just kittykatky. No numbers or anything else. Her name should be Jessica. good luck finding great stuff!!!
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