Winning by offering the lowest price is ultimately, a losing proposition. Prices that underrepresent the actual value provided by a product or service mean lost profits. Regardless, in highly competitive industries, companies face immense pressure to discount prices.
According to industry research, a price rise of just 1 percent, if volumes remain stable, can generate an 8 percent increase in profits. Resisting price discounting is the fastest and most effective way for organizations to increase profits.
Companies fall victim to lower prices by allowing their offerings to become commoditized. This can happen because:
- They don’t understand their customers and their target markets well enough, and what customers really value
- They are too product-focused and don’t communicate the full value they help customers create with their solutions
- They don’t differentiate their capabilities and value over competitive alternatives
- They don’t build sufficient support at the right levels in buying organizations, leading to being stuck in discussions with procurement staff
We help you avoid commoditization and maintain profitable prices by:
- Determining effective sales strategy
- Conducting objective “Voice of the Buyer” interviews to determine what customers value in a vendor and how they make their buying decisions
- Analyzing competition to identify your competitive differentiators
- Creating clear, accurate buyer-persona definitions and aligning your value proposition with what matters most to them
- Developing buyer-focused selling processes
- Clearly defining customer buying processes and updating sales processes to closely align with buyer preferences
- Establishing sales management cadence and skills for inspection of sales pipelines
- Providing value-based selling training and development
- Enabling marketing and product managers to create buyer-focused solution messaging
- Equipping salespeople with methodology and skills for positioning and selling the value of solutions, and differentiating from competitive alternatives
- Training sales managers to hire top-performing sales talent and to coach salespeople to sell the value of solutions
- Implementing sales enablement tools and technology
- Implementing a unified system integrated in CRM to deliver continual learning of sales practices and support lasting performance improvement
- Offering tools and apps that enable the salesperson to execute effective value selling processes, methods, and skills more quickly and easily
Our solutions will enable you to win more without sacrificing profitability.