Wednesday, February 25, 2009

PRODUCT PRICE

So many time in my company, I see people requesting for lower price to close deal and tender.

As customer, price is not the only main concern. You should look at reliability, stability of the company you are purchasing. Also before and after service.

As salesperson or employee, you are a key person who contribute to the revenue in the company. Yes, reducing price will closed the deal. But it reduces the company overall revenue which in term less profit, less increment and less bonus. As sales you need to look at the big picture as well.

As company, you should equip sales with as much selling tool for them to sell – feature, proven service, training, etc.

1 comment:

Charles said...

It's common to see many people focusing on prices. That's the natural first reaction to people who are not doing business. That's because they can only see from the point of money whenever they are buying something. They are more experienced as consumers...

Consumers are too used to looking at a lower price. They don't ask you if you provide IPOD when they buy a car from you. But Kia did that to me by selling me a car with IPOD bundled in it...

By bundling IPOD in the car purchase, it is also a way of increasing the value of the product.

Must always ask them to look at comparing by the values each product is providing, instead of looking at pricing.

For sure, if two products are of equal value are priced differently, I will buy the cheaper one.

But if these two products are branded differently with the same price and values (such as Toyota versus BMW), I will buy BMW!