MANUFACTURERS’ ASSOCIATION   OF SOUTH CENTRAL PA            Pricing            Considerations &            Practices
IS THIS HOW YOUR PRICINGPROCESS LOOKS FOR YOURPRODUCTS & SERVICES 
Sell Value Not Price1.   Price will ALWAYS seem high if value is     perceived as low!2.   Customers don’t want cheap, the...
What The Customer WantsProspects & Customers want suppliers to deliver:1.   Timely & Responsive Service2.   Quality Produc...
ELEMENTS OF PRICE1.   First there is price, or what people will pay for     what they buy2.   Second is cost, or what they...
Customers Say Low Price, ButWant Low CostHow do you change the dialog from lowest priceto lowest cost?How do convince them...
Lowered Price = Other ConcessionsUse prospect’s attitude about price and cost as abarometer for the overall quality of the...
Overcoming Price ResistancePrice resistance is not a price or cost issue, itcomes from perceived value.How do you raise pe...
Get all Information EarlyThe Information You Don’t Get Early Will Hurt You LaterIn The Sales Process.EXAMPLES:____________...
Never Make AssumptionsGet Information B-4-U Give It     –   Must it be?           Slit           Trimmed           Trea...
PROVIDE AN EXAMPLE OFCOMPLEX PRICING     Added Value     $ Amount Added   ______________   ______________   ____________...
Focus On ValueWhat does the product do for the customer?How have you raised the value of the product,and not lower the pri...
Overcoming ObjectionsMake A List of Objections You Normally Hear During ATypical Sales Process.1._________________________...
Prioritize The ListWhich ones do you hear most?
Evaluate The ListDo You Hear Them Because of:  –   Poor Prospecting?  –   Poor Product Knowledge        By Customer      ...
Disarming ObjectionsDevelop a strategy to answer these issues during thesales process.Frequently Heard Objection is:______...
TRUSTPeople Buy From People They Trust.The key to building trust: Promise a lot and delivermore!What are examples of when ...
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Sales Training Pricing Considerations

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Sales Training Pricing Considerations

  1. 1. MANUFACTURERS’ ASSOCIATION OF SOUTH CENTRAL PA Pricing Considerations & Practices
  2. 2. IS THIS HOW YOUR PRICINGPROCESS LOOKS FOR YOURPRODUCTS & SERVICES 
  3. 3. Sell Value Not Price1. Price will ALWAYS seem high if value is perceived as low!2. Customers don’t want cheap, they want BEST Value for their dollar.3. You will lose in long run when focus on price comes from: – Poor Product Knowledge – Poor Client Knowledge – Poor Sales Skills
  4. 4. What The Customer WantsProspects & Customers want suppliers to deliver:1. Timely & Responsive Service2. Quality Products & Services3. Low Price
  5. 5. ELEMENTS OF PRICE1. First there is price, or what people will pay for what they buy2. Second is cost, or what they pay for what they buy over time3. And then there is “Perceived Value”, or what they want for the money they pay.
  6. 6. Customers Say Low Price, ButWant Low CostHow do you change the dialog from lowest priceto lowest cost?How do convince them they really want theirproblems solved, not the cheapest product?How do you raise perceived value?
  7. 7. Lowered Price = Other ConcessionsUse prospect’s attitude about price and cost as abarometer for the overall quality of therelationship in general.BEWARE: Those who make a big deal out ofprice and expect all kinds of price adjustmentsusually require a lot of other concessions as well.
  8. 8. Overcoming Price ResistancePrice resistance is not a price or cost issue, itcomes from perceived value.How do you raise perceived value?How do you probe for problems when youreceive price resistance?
  9. 9. Get all Information EarlyThe Information You Don’t Get Early Will Hurt You LaterIn The Sales Process.EXAMPLES:____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
  10. 10. Never Make AssumptionsGet Information B-4-U Give It – Must it be?  Slit  Trimmed  Treated – Urgency of Delivery  From Inventory  From Production Run – FOB Hanover or Delivered Price – LTL Shipment or Truckload – Payment in US or Foreign Dollars  Exchange Rate at time of Delivery – Special Handling Issues
  11. 11. PROVIDE AN EXAMPLE OFCOMPLEX PRICING Added Value $ Amount Added ______________ ______________ ______________ ______________ ______________ ______________ ______________ ______________ ______________ ______________ ______________ ______________ ______________ ______________ ______________ ______________ ______________ ______________
  12. 12. Focus On ValueWhat does the product do for the customer?How have you raised the value of the product,and not lower the price?Lowering price only makes the prospect orcustomer question your original price as well asview the lower price with suspicion.
  13. 13. Overcoming ObjectionsMake A List of Objections You Normally Hear During ATypical Sales Process.1.___________________________________________2.___________________________________________3.___________________________________________4.___________________________________________5.___________________________________________6.___________________________________________7.___________________________________________8.___________________________________________9.___________________________________________10.___________________________________________
  14. 14. Prioritize The ListWhich ones do you hear most?
  15. 15. Evaluate The ListDo You Hear Them Because of: – Poor Prospecting? – Poor Product Knowledge  By Customer  By Sales Person – Poor Presentation Skills – Other _______________ – Other _______________ – Other _______________
  16. 16. Disarming ObjectionsDevelop a strategy to answer these issues during thesales process.Frequently Heard Objection is:___________________________Strategy to overcome Objection is:____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
  17. 17. TRUSTPeople Buy From People They Trust.The key to building trust: Promise a lot and delivermore!What are examples of when you did what you saidyou will do and then some?

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