Discounts Don’t Equal Dollars

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Often salespeople argue that the price of what they are trying to sell is too high and because of which, they resort to offering discounts on your product or service just to make the sale. 

If you notice that the majority of your sales are offered with discounts, you’re doing something wrong. The problem here is behavioural and with a few simple modifications to how you manage your company, the attitude of the sales team can change in a way where sales will be achieved without the price cuts.

Salespeople Need to Believe Their Pricing Strategy

As you know, salespeople are confident. However, if sales quotas aren’t met they will instantly blame the price because there aren’t confident with the companies pricing strategy. So how is their behaviour going to change?

Easy. You’re going to have to stop asking your sales teams to provide detailed sales reports that state why sales didn’t occur. Prevent there from being any opportunity to point to price as an excuse. We all know they won’t admit it was their own doing. Instead, provide them with numbers to show why your pricing is correct.

Cost Reduction Shouldn’t Mean Price Reduction

If you company needs to make price cuts, don’t put it on the hands of the sales team. It’s management’s job to make the tough decisions without impeding the end goal of making quarterly sales and profit numbers. If your sales team can see that you are struggling, it will only reinforce the idea in their mind that they can cut the price for the clients.

Eliminate “Discount” from Their Vocabulary

This one is easy—take away your salespeople's control over price flexibility. Of course this will cause some controversy between the management and sales team but after time the bottom-line profit will increase.

If the attitudes of the salespeople can be adjusted in a way where they believe in your product AND price, than their skills in sales should be enough to get the client to believe the same.