Let us create a 3d Digital eBook for you! DigyCat.com
Discounting Your Way Into Sales Oblivion
I don't even like saying the word d---------g. I have literally obliterated it from my dictionary with a black marking pen. I'll bite my tongue until it bleeds, before I say the word.
Earlier this week Bernadette, my wife, and I went shopping . . . something I love to do. Just kidding! We were looking for a 3-piece plant stand for our deck. We found one in a catalog and went to the store to check it out.
Bernadette always asks the sales person if he can do better on his price. You'd be surprised how much you can save just by asking.
Sidebar! The word ASK is the most powerful word in a sales person's vocabulary.
Back to what happened. We debated over two different pieces and made a decision. The piece we didn't select had a 30% discount tag on it.
According to the sales person the 3-piece set we decided on was not on sale. Our sad faces didn't seem to move him. He said he could get into trouble for giving us a discount.
Another sidebar. The GNP of the United States would increase by a staggering amount (Probably hundreds of billions) if all salespeople got into trouble with their organizations for giving discounts.
Back to the store. The salesman said the display unit was the only one available. Bernadette asked for a discount if we took the floor display.
He caved in and finally said I'll give you a 10% discount.
Here's the math: The list price was $178. 10% equals $17.80.
He could have said, after doing the math, I'll take $15 off because it's a display unit. The $15 is 8.4%. We would have been thrilled. And you can bet the ranch, we would not have reached for a calculator to see what the percentage discount was.
In my opinion dollars off always sounds more impressive than a percent discount.
Because it was a display item the salesperson had to remove some things before he could bring the 3-pieces to the cash register. Bernadette inspected each piece. They were painted black and one had a sizable and noticeable scratch on it.
Bernadette once again asked if he do any better on the price because of the damage on the 3-piece plant stand.
It's time for more math. Remember he first offered us a 10% discount.
If he increased the 10% discount to 12% the increase is 20%.
If he increased the 10% discount to 14% the increase is 40%.
If he increased the 10% discount to 16% the increase is 60%.
If he increased the 10% discount to 18% the increase is 80%.
If he increased the 10% discount to 20% the increase is 100%.
Without any hesitation he said I'll give you 20% off.
He doubled his original discount. It doesn't sound like much but in reality it is. The plant stand list price was $178. For other products, perhaps even yours, it could have been $1,788, $17,888, $178,888, or even $1,788,888.
Don't be too quick to give discounts, especially big ones. Use your head and do the math before you offer additional price concessions.
Forget about defending your price and do your best to explain your value.
Here are a few more things to keep in mind:
If you offer genuine value - don't give it away, charge for it.
If you absolutely must offer a price incentive, never start with round numbers. Make sure there's a decimal point included.
For example, any professional sales representative offering 5%, 10%, 15%, 20% off etc. should have to listen to seven straight hours of Lawrence Welk Music. If you must offer a concession try 3.9%, 8.9%, 13.6%, 19.3% etc. Once you calculated the discount % convert it to dollars because it always sounds like more.
Never offer a price concession without getting something in return - NEVER.
Finally, a small disclaimer. Please don't think I'm violating my pricing strategy when you see me offer special incentives for my products. My speaking and consulting fees are at list price and I seldom offer any discounts.
I have negotiated very good pricing for all my products. And I'm happy to offer you a price break from time to time if it helps you to invest in your self-development. See the end of this letter.
In a nutshell - anybody can offer a discount.
If profitability is the applause of a happy customer you should be raising your prices, especially if your customers are happy.
Jim Meisenheimer is the creator of No-Brainer Sales Training.His sales techniques and selling skills focus on practical ideas that get immediate results. You can discover all his secrets by visiting his website: http://www.meisenheimer.com
Sales Management - Google News
This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news
Accepting Responsibility for Your Sales Success
That we live in a time of relentless and pervasive change is no longer news to anyone. There is one important implication of this situation that continues to be a challenge.
Book of Lists Marketing for Pressure Washing Companies
The American Business Journals produces a Book of Lists each year in their many markets, it is wise for pressure washing companies to use this book of lists to find new clientele. The book of lists, lists the top companies in size in all industry sectors.
The Benefits of Catalog Sales For Your Business
Things to watch out for when selling your product in catalogs.Giving away the farm.
Are Your Business Proposals Losing You Sales? 10 Steps to Get the "Yes" You Deserve
Your ability to write an effective and persuasive business proposal directly relates to your level of success. Write a great proposal and you'll get the contract or make the sale.
Producing Premium Performance
One of the major issues that arises in managing a small or medium size business is in the area of employee performance. Many business owners are frustrated with the poor performance of their team or some individuals within their team.
Want to Increase the Amount of Business that Your Firm is Getting?
Business development is important for every business and refers to the action of bringing in customers or clients that are likely to make positive contributions to a company's bottom line. Business Development is all about establishing relevant and subsisting relationships in the market place.
8 Line Items of a Trade Show Budget
Budget Guidelines for Trade Show MarketingB'techa didn't know - Trade shows are the second largest expenditure of corporate marketing dollars in the US. Only the field salesperson costs a company more.
The Differences Between A Commercial Collections Agency & Lawyer
If your letter writing and phone calls have all failed to resolve a debt issue, it is time to call in a professional - a commercial collection agency or a lawyer specializing in commercial debt collection.The most obvious choice to collect an unpaid debt is a commercial collection agency.
The Nine Warning Signs that You Need a Sales Video
Corporate videos are an important sales tool that can often be overlooked in marketing budgets.We look at the top nine tell-tale signs that indicate whether your company is in need of an innovative and effective way to promote itself.
The Surest Way to Boost Sales
If you have a small business and you are looking to boost your sales and make the public aware of your business, how do you going about doing this? There is one sure way that I know to boost sales and create awareness. It may not be sexy, but it WORKS!The best way to "start" marketing any business is to develop a marketing plan.
How to Beat the 80/20 Rule in Sales Performance -- Part 1
Business executives and sales managers frequently bemoan "80/20" performance on their sales teams, where approximately 80 percent of sales are produced by approximately 20 percent of salespeople. Why do salespeople perform so differently? What is it about top sales performers that enables them to achieve such vastly superior results?Certainly there are some sales skills that anyone can learn.
I recall a heated discussion with a sales director some time ago where I proposed that the long-term effect of setting activity targets for salespeople would eventually lead to failure. He vehemently made the point that he had systematically imposed activity targets on his sales force and that the result had been to treble average income per salesperson within 18 months.
Free to Succeed: Effective Sales Leadership Using A Coach Approach
About 2 years ago, I participated in a training program I'll never forget. The leader divided us into two teams.
Beyond the Golden Rule
There are several types and sub types of people in the world. Getting to understand the differences will help you connect with other people.
The Art of Sales (And Tips On How To Manage Your Sales Team)
Selling. Cold calls, introductions, interviews, appointments, proposals, referrals, call cycles, building rapport, listening, asking for the order, overcoming objections, closing the sale, and rejection.
How To Have A Successful Retail Sales Event
In the 30-plus years I spent working in advertising and marketing, one of the most frequently asked questions I got from retailers was "how can I make sure I have successful sale?" While there are no hard and fast answers to this question, there are some guidelines you can follow to maximize your chances of that sale being successful.First, if your store is in an area with fairly frequent rains (or snows), do not, and I mean, do not have a one-day sale.
Disclosure Laws Favor International Terrorists
The Federal Trade Commission has rule that are supposedly in place to protect franchise buyers from fraud from franchisors who might attempt to mislead them into purchasing a franchise. Part of the franchise rules are addressing required disclosure paperwork.
100% Commission Equals Zero Percent Control
The temptation to use straight (100%) commission plans never goes away: "Let's put our salespeople on 100 percent commission. Then, if they don't perform, we're not out any money.
How We Build a 90% Failure Rate into the Sales Process
I recently began doing training in the banking industry. Across the board, successful bankers close between 2% and 6% of the prospects they call on, starting from their first prospecting call.
Raise Your Fees Overnight!
Do you want to make more money?Yes, I guess that is a rhetorical question. Everybody wants to make more money, but oftentimes we are not willing to do what needs to be done in order to make it.
List4Sale Domain Is For Sale - $10,000 For Enquiries eMail Us
© www.List4Sale.biz 2012