Hardwood Floors October/November 2017

SALES SAVVY BUSINESS BEST PRACTICES

By Paul Reilly

are $elf-Inflicted Wound $

Price Objection $

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In a recent survey, we asked salespeople the following question: “ ink of your largest revenue-producing customer. If that customer said, ‘I want a 10 percent discount, or I will bid this out,’ would you give the customer a discount?” Seventy-two percent of participants indicated they would discount. e mere threat of a bidding situation prompts salespeople to discount. Experienced buyers know that when they ask for a discount, they easily get it. Why wouldn’t they ask for it? Our internal research shows that salespeople fail to hold the line on pricing because they fear losing the business. In a recent seminar, we had a group of salespeople perform a simple exercise. e group was instructed to share an example of a recent piece of business they lost because they held the line when the customer asked for a discount. e result was compelling. e group couldn’t complete the exercise. ey couldn’t remember the last time they actually held the line on pricing. e group explained that their fear of losing the business was greater than the commitment to sell their value added.

Experienced buyers know salespeople fear losing business. Buyers use this pressure to get discounts. However, value-added salespeople steer the conversation toward value, not price.

“Experienced buyers know salespeople fear losing business. Buyers

use this pressure to get discounts.

However, value-added salespeople steer the conversation toward value, not price.”

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