|
Tom Reilly Training Home of Value-Added Selling and Coaching for Sales Success |
|
|
Should Salespeople Have Price Authority? (Part 1) by Tom Reilly, author Crush Price Objections (Motivation Press) No! Whenever I write this article and ask this question, I generally get plenty of responses from those who wish to argue this point with me. Save your words. I don’t budge on this issue and here’s why. Pricing is a strategic marketing decision that salespeople execute tactically. Pricing is one of the four marketing P’s. Sales is a function of marketing, not the other way around. Should pricing managers listen to the field and use their input for their decisions? Yes. But, my reasons cut deeper than this. I’ve observed way too many salespeople that lacked the conviction, resolve and skills to hold the line on their prices. I listened in on an inside sales rep for a florist who when the customer said he wanted to spend $200 for “something nice” for his wife, the salesperson said, “You don’t need to spend $200, I can get you something nice for $50.” I almost had to sit on this person’s boss to prevent the manager from taking over the phone call. I listened to another sales rep that, when the customer opened with “I need a discount,” the sales rep said, “That shouldn’t be a problem.” Another rep called a customer to discuss a customization fee and said, “If this is a problem for you, maybe I can try to negotiate it down.” These are not isolated examples; I hear this every week. For those that want to argue that salespeople may appear “weak” in the customer’s eyes if they can’t negotiate price, that’s exactly why they should have to check with someone else when it comes to price. If your company’s goal is to hang on to your well-deserved profit, there must be some vetting process to protect it. More on this in my next Sales Bytes. |
TOM REILLY TRAINING 171 Chesterfield Industrial Boulevard, Chesterfield Missouri 63005 636-537-3360 www.TomReillyTraining.com ©2008 Tom Reilly Training |