Pricing and sales teams often have a tense relationship, but it doesn't have to be that way. This presentation looks at why sales teams view pricing initiatives with skepticism, and how to move to a collaborative relationship where pricing helps sales.

1. Pricing & Sales:
From Rivals to
AlliesProfessional Pricing Society Spring Conference May 10, 2012. Chicago
Reuben Swartz
Founder, Mimiran

2. Wild West

3. Command and
Control

4. Turf War

5. The proverbial
1%

6. What sales hears:
“Sales
prevention”

7. Why?
Opportunities x Avg Selling Price x
Close %
Sales Cycle Length
Revenue =

8. 1 x $100,000 x 3%
1 month
= $3k/m
1 x $105,000 x 3%
1.5 months
= $2.1k/m
1 x $105,000 x 100%
1.5 months
= $5k
incrementa
Baseline
Agent Selling Your House
Agent Selling Own House
In which scenario do your sales reps live?

9. Example
1,000 x $100,000 x 25%
1 month
= $75M/qtr
1,000 x $101,000 x 25%
1.06 month
= $71.5M/qt
1,000 x $101,000 x 24%
1.06 month
= $68M/qtr

10. Profit vs Revenue
Graph
Price ($)
Volume
Price that maximizes profit
Price that maximizes revenue
Demand
Revenue
Cost
Profit

11. Going Native
“We are our own worst
competitor!”
•SVP Sales & Marketing, Global 2000
Manufacturer

12. Pricing Support
List Price
Price Floor

13. Price Change
List Price
Price Floor

14. Dangers of
Discounts

15. A place for old
discounts

16. Omelet Pricing:
Take away price, take away value

17. What’s the least
time a rep can
spend negotiating
price?

19. Software Projects
1,000 x $100,000 x 25%
1 month
= $75M/qtr
1,000 x $101,000 x 24%
1.06 month
= $68M/qtr
1,050 x $101,000 x 26%
0.94 month
= $88M/qtr

20. Don’t Fight a Turf War

21. LeadGen
Prospecting
Needs
Analysis
Quote
Proposal
Negotiation
Approval Process
The “Right” Leads and Message Automate, including appropriate discount options
Streamlined
Mimiran: Online Proposals Made Easy

22. Push to the Edge
No: 100% approved “approval process”
Yes: Meaningful pricing guidance and
options
No: Unearned, unmanageable discounts
Yes: Optimize entire sales process

23. My to do list

24. Thank You
reuben@mimiran.com