Having done an extensive amount of sales training, both with
sales representatives, as well as sales managers, over more than the
last thirty years, I have invariably been asked about the delicate
balance between price and sales, especially as it relates to
profitability and customer creation. One of the biggest errors I have
witnessed is when sales people believe they can buy a customer's
loyalty, by immediately offering the lowest possible pricing. However,
the reality is that while one may make a sale by low-balling a price, it
is rarely in the long term interest of the company to make that the
stand operating procedure. One situation where this is often prevalent is in real estate, where some homeowners are overly flattered by an artificially high suggested listing price, rather than one which might get the best results. Remember that listing and selling price are often widely differing things! Another real estate - related situation occurs related to the commission that one real estate professional might ask for, as opposed to another. Isn't it more important how well a home sells, than the commission paid? If one of the essential skills of the professional is negotiating effectively, if he cannot explain and justify his commission, how can he negotiate the best price and terms for his client?
1. The most important need for effective sales and marketing is effective listening. Obviously, everyone wants to get value, especially in these economic times. However, the danger in concentrating most of one's marketing efforts on price, is that any other competitor can always match or beat your price, and you have done nothing to gain that individual's loyalty. For example, there are hundreds of places that wireless phones are sold near where I live, as I am sure is true nearly everywhere. Some of these places are exclusively devoted to wireless service, while others sell this alongside other products and services. Curiously, I have observed that many of these stores open, and within a short period of time, close up. I've noticed that the ones that close, for the most part, are those that attempt to entice customers by price and empty promises. On the other hand, in my neighborhood, one of the most successful of these stores, while always remaining competitive price- wise, excels in its customer service. They pay particular attention to helping even after the sale, helping with any setup that may be needed, and with any warranty or replacement phone issues. They do not nickel and dime their customers with excessive extra charges for items such as chargers, ear pieces, cases, etc. They bend over backward, not only to get the customer once, but to keep customers for the long haul. This relates to any industry, whether it is a product or service being sold!
2. Many local businesses have had to face the reality that the large "big box" stores are often difficult to compete with simply on price. Small businesses also, obviously, have nowhere near the same marketing/ advertising budgets as these large chains. This has created a situation where some local merchants have had to close, because of loss of revenue/ business. On the other and, other local merchants have flourished. What have these merchants that have been successful done that the others did not? In many cases, it was listening to what their customers were saying and what they wanted, as well as providing personalized service. In other words, the successful stores did not rely on price as their major weapon, but rather sought ways to create a niche for themselves that made them invaluable to their customers/ clients.
Effective sales and marketing technique requires the ability to think outside the box, and be a solution based, personalized enterprise. This is more true today than ever.
1. The most important need for effective sales and marketing is effective listening. Obviously, everyone wants to get value, especially in these economic times. However, the danger in concentrating most of one's marketing efforts on price, is that any other competitor can always match or beat your price, and you have done nothing to gain that individual's loyalty. For example, there are hundreds of places that wireless phones are sold near where I live, as I am sure is true nearly everywhere. Some of these places are exclusively devoted to wireless service, while others sell this alongside other products and services. Curiously, I have observed that many of these stores open, and within a short period of time, close up. I've noticed that the ones that close, for the most part, are those that attempt to entice customers by price and empty promises. On the other hand, in my neighborhood, one of the most successful of these stores, while always remaining competitive price- wise, excels in its customer service. They pay particular attention to helping even after the sale, helping with any setup that may be needed, and with any warranty or replacement phone issues. They do not nickel and dime their customers with excessive extra charges for items such as chargers, ear pieces, cases, etc. They bend over backward, not only to get the customer once, but to keep customers for the long haul. This relates to any industry, whether it is a product or service being sold!
2. Many local businesses have had to face the reality that the large "big box" stores are often difficult to compete with simply on price. Small businesses also, obviously, have nowhere near the same marketing/ advertising budgets as these large chains. This has created a situation where some local merchants have had to close, because of loss of revenue/ business. On the other and, other local merchants have flourished. What have these merchants that have been successful done that the others did not? In many cases, it was listening to what their customers were saying and what they wanted, as well as providing personalized service. In other words, the successful stores did not rely on price as their major weapon, but rather sought ways to create a niche for themselves that made them invaluable to their customers/ clients.
Effective sales and marketing technique requires the ability to think outside the box, and be a solution based, personalized enterprise. This is more true today than ever.
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