New Year, New Price

Posted by Chris Mitchell on Nov 3, 2015 7:00:30 AM
Chris Mitchell
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At this moment, your organization may be planning price increases for 2016.  Price setting is one thing, while ‘price getting’ is quite another.  In a recent poll, I asked participants, “How many organizations lacked discounting discipline?” and, most hands went up. I followed this question with another, “How many of you are planning price increases for next year?” and, again most hands went up.  If you are old enough to have been a fan of the former cartoon series, Scooby-Doo, the response “Ruh-roh” might come to mind.  Without fixing the former issue and arming the sales force with the skills and mindset to achieve the latter, any attempts to increase prices will meet the same fate.  Furthermore, if you do fix the former, the latter may not be necessary.

Lack of discipline is cultural, rooted in how an organization behaves rather than in a fancy mantra.  Manifestations of this, despite the best intentions, might also be in the form of granting extra free services or extending warranty periods when buyers resist your price.  Isn’t profit leakage the ultimate result in either case?  All of this is avoidable with the proper preparation and training in place.   Remember, price setting is not price getting!

Where does your organization stand?

Topics: Selling with Confidence