As customer expectations change and business models rapidly evolve toward a world of “everything-as-a-service”, pricing models have to adapt and change. While the risks are shifting more toward the vendor and the value that the vendor provides is increasingly scrutinized, the sales force now has to go even further to identify and describe meaningful customer value. Perceived value drives margins and many companies give away margins because they fail to articulate perceived value. As an example, perceived value includes ease of doing business, quality perception and/or time-to-market. A sales force needs to help customers discover and understand the appropriate price for a perceived value.
Successful price negotiations are based on the sales force’s ability to recognize the customer’s decision-making motives and KPIs. Especially for highly complex technology solutions or complicated financial arrangements, a sales force has to be able to clearly communicate the perceived value so the customer sees the value to them.
Margin Academy helps you find the answers to these related questions:
• How can you find out what your customers’ price perceptions are?
• How do you set a price that fits both your own and your customers’ requirements?
• How can this price survive even the toughest negotiations?
Many sales leaders are realizing that what was an important part of their job has now become absolutely necessary: defining and executing a winning pricing strategy. More than almost any other factor, pricing drives profitability - therefore securing sustainable margins has become a critical issue for sales management. However, pricing power is eroding in many industries. As the pressure to secure profitable business increases, many sales leaders are realizing that their teams are not adequately prepared to either defend their current pricing, or to sell price increases. Top sales performers use a variety of techniques and methodologies throughout the buying process with their clients in order to ensure profitable margins.
More than almost any other factor, pricing drives profitability - therefore securing sustainable margins has become a critical issue for sales management. However, pricing power is eroding in many industries. As the pressure to secure profitable business increases, many sales leaders are realizing that their teams are not adequately prepared to either defend their current pricing, or to sell price increases. Top sales performers use a variety of techniques and methodologies throughout the buying process with their clients in order to ensure profitable margins.