Distribution Pricing Journal

SEPTEMBER 21, 2023

Understanding Price Reduction Discounting is a familiar tactic when trying to win large jobs in distribution. You also risk creating an expectation with all your customers that another discount is around the corner. It also gives you a chance to take advantage of supplier discounts without lower other prices.

Discount 52

Discount Distribution Customer Tourism 52

The Pipeline

APRIL 6, 2021

Doing a much better job selling the manager on the discount than selling the value to the prospect. While it is the company who feed and clothe the rep, many place their employer’s margins as less important. Yet they are willing to fight for a discount every time, no matter the profit erosion.

SME 299

SME Lead Rank Lead Scoring Discount 299

Understanding the Sales Force

MAY 10, 2023

Instead of discounting, get better at selling value. Anyone who knows how a company’s economic engine works, knows that if you pay a salesperson $150,000 and they generate $1 million at a 40% margin, the company will get a return of $250,000 on their investment. Yes, but it’s counter-intuitive. What’s not to like?

Revenue 156

Revenue Hiring Decision Maker Cancellation 156

Pipeliner

AUGUST 21, 2023

Offering discounts in every email trains customers to never pay full price and eats into profit margins. This constant bombardment of discounts also cheapens the value of the products or services being sold. Another mistake is not finding the right email frequency.

Scale 97

Scale Strategy Marketing Lead Rank 97

MTD Sales Training

NOVEMBER 4, 2011

Offering a discount to help motivate the prospect can often be a powerful inducement to close a few more sales. Offering a discount is a delicate issue and you should only use it as a last resort. Stand firm on your original price, and close on it at least three times, before even thinking about a discount. . MTD Sales Training.

Closing 303

Closing Discount Referrals Margin 303

Janek Performance Group

MARCH 1, 2023

“I just closed a deal with a 60 percent gross margin!” What’s the net margin? The salesperson looked confused and asked, “Net margin, what’s the difference?” But the net margin is what you take home after taxes.” I’m curious what your net margins are on an average deal?” “On

Margin 62

Margin Decision Maker ROI Hiring 62

Hubspot Sales

FEBRUARY 12, 2024

Small businesses in this space make between $70k and $100k per year, with a 10%-28% profit margin. Differentiate yourself by offering discounted subscription cleans, eco-friendly detergent options, and winning customer service. ? Train cleaning teams. Or, recruit the robots.

Industry 80

Industry Chemicals ROI Lead Rank 80

MTD Sales Training

AUGUST 15, 2018

By simply going into discount mode , you run the risk of giving your margin away without any justifiable reason, and the prospect may take advantage of it. MTD Sales Training | Sales Blog | Image courtesy of Big Stock Photo. 3) When an objection is brought up, isolate it. Happy Selling! Happy selling! Sean McPheat.

Objections 154

Objections Face-to-face Margin Discount 154

Sales Evangelist

JUNE 21, 2019

We’ve all encountered price wars against the lowest bidder, but today we’re going to talk about how you can stand your ground, protect your margins, and earn the price that you’re worth and how that will help you grow your business. Human beings are trained to seek deals and discounts. Preview it. Check it out.

Margin 65

Margin Hiring How To Consumer 65

MTD Sales Training

DECEMBER 13, 2018

If the customer asks for a higher discount , this should be traded for quicker payment terms, or more volume, or promises of further orders to offset the decreased margins you will be achieving. MTD Sales Training | Sales Blog | Image courtesy of Big Stock Photo. 8) Look for a collaborative position, not a compromise.

Negotiation 174

Negotiation Margin Positioning Insurance 174

Hubspot Sales

OCTOBER 3, 2022

These might include: 10% discount on the cost of the software. Free training & educational materials provided by your customer support team. This isn't always straightforward: For instance, what's the impact on productivity or overhead costs if you're requiring your customer support team to help with implementation and training?

Negotiation 92

Negotiation Discount Customer Hiring 92

Customer Centric Selling

DECEMBER 10, 2012

Sales Training Article: Why Are Your Deals Bleeding Margin? By John Kenney, Sales Benchmark Index (SBI) This blog post is for those who sometimes find their sales teams negotiating against themselves, closing dirty deals to make quota, or finding their margin-rich transactions disintegrate at the end of quarter.

Margin 40

Margin Negotiation Proposal Face-to-face 40

PandaDoc

APRIL 26, 2023

Gross margin commission Gross margin commission is paid on the margin from selling specific goods and services. It is designed to prevent sales representatives from using discounts too often, as the commission is tied to the final cost. The margin is $400, and a commission will be paid on that.

Commission 52

Commission Salary Margin Scale 52

Hubspot Sales

OCTOBER 16, 2017

Reduce discounting frequency. Reduce average discount size. Salespeople are demotivated to do anything but sell, so good luck asking them to attend meetings, log notes, go to training, etc. According to RepHunter , 20% to 40% of gross margin (sales minus direct expenses) is standard. Paying on gross margin.

Compensation 129

Compensation Hiring Salary Commission 129

Smooth Sale

AUGUST 31, 2022

You can also use social media platforms to run promotional campaigns or offer discounts. Offer Discounts and Deals. Discounts and deals can effectively boost sales, especially if you’re starting or launching a new product. Value upfront plus the offer of a discount to new customers can help you to acquire them.

Small Business 78

Small Business Small Business Hiring Discount 78

Klozers

JUNE 5, 2014

Sales People often provide discounts or incentives to buyers in order to help them hit sales targets and win more business. This results in lower margins which can cripple the business rather than provide a profitable platform for growth. Sales people therefore do not feel any pain when they discount.

Discount 42

Discount Margin Negotiation Commission 42

The Pipeline

OCTOBER 22, 2012

To do that I asked a couple of people I know, also involved in sales training to sit down to conduct the review, in essence to play the role of the manager, and keep me honest. Much better to get your clients addicted to your value/quality, then you becoming addicted to discounting. At first you figure you hey what’s a 3% discount.

Discount 303

Discount Margin Commission Trends 303

Janek Performance Group

JUNE 21, 2022

Price is Too Low or Discounting Too Fast. When startups sell on value (and stop discounting so quickly), you immediately increase the perceived value to the marketplace. Too often, sales reps don’t have the confidence to maintain a healthy margin, so they fall into the price-matching game.

Ideal Customer Profile 62

Ideal Customer Profile Scale Hiring Discount 62

The Brooks Group

JANUARY 31, 2020

Don’t Play All Your Cards: Discounting should not be your go-to strategy to win the business - at least that’s what researchers say. Fully seven in 10 respondents said they would only ask once or twice for an additional discount. Sales Coaching Sales Training

Margin 59

Margin Hiring Negotiation Gatekeeper 59

MTD Sales Training

AUGUST 4, 2016

Volume discounts, shipping charges, costs scheduling , warranties, technical back-up, etc, etc. Incentive schemes are constantly being tweaked to match better pricing and better margins. MTD Sales Training | Sales Blog | Image courtesy of Big Stock Photo. can become the main topics of conversation. Happy selling! Sean McPheat.

Sales Process 120

Sales Process Margin Policies Incentives 120

The Brooks Group

OCTOBER 11, 2017

Maintaining a healthy profit margin is (of course) important to the overall success of your sales team and organization. Once your salespeople are out in the field trying to sell your offering, should they have pricing authority (aka the ability to freely give discounts)? This can cut into margin and be unsustainable in the end.

Discount 56

Discount Margin Negotiation Face-to-face 56

Pipeliner

JANUARY 12, 2020

The more stuck you are on the merry-go-round, the more likely it is that you or your sales team discounts their way out of trouble rather than using your company’s differentiation. Are You a Discount-happy Order-Taker or a Profitable Producer? Customers are easily trained to expect, then demand discounting.

Discount 92

Discount Top of Funnel Hiring ROI 92

Hubspot Sales

MAY 24, 2023

Keep in mind that offering a discount should never be your first play. Working backward from that date and accounting for installation and training, the salesperson can pinpoint the ideal contract sign date. Splitting the difference means substantially decreasing your margins. Will they sign today? And if that day is today?

Negotiation 117

Negotiation Hiring Margin Buyer 117

Braveheart Sales

MAY 4, 2021

Time Training and Onboarding. If you want a surefire way to kill your margins, then go ahead and hire the wrong salesperson, and let them waste your leads, frustrate everyone on the team and drive you nuts, while asking for discounts at every opportunity. Why so much? It breaks down to these components: Pay.

Hiring 52

Hiring Margin Discount Sales Qualified Lead 52

Cincom Smart Selling

JUNE 30, 2020

An example here is that it is not possible to configure a product that can’t be built or issue a quote that has a discount which was not approved. Increased Margins. Reduction or Elimination of Sales Training. One example here are context-sensitive “Help” or “Training” videos that show a user how to go about a specific problem.

Benefit 62

Benefit Proposal Discount Vendor 62

The Sales Hunter

OCTOBER 11, 2012

The lower profit margin you’re making selling at the lower price is not going to give you or your company the level of profit you need to operate. And you certainly can’t make a habit out of discounting. This is the bane of so many issues. Why do anything that would attract difficult customers?

Discount 276

Discount Margin Motivation Groups 276

Corporate Visions

JULY 2, 2020

You can think of training and enablement programs as similar waves along a continuum. The first wave in training and enablement is represented by traditional Learning Paths , the original development programs. Negotiations and Discounting – Review deal profitability to find the “unscrupulous discounters.”

Sales Enablement 105

Sales Enablement Webinar Metrics Territories Top of Funnel 105

Sales and Marketing Management

SEPTEMBER 17, 2017

If your company lives and dies on razor-thin margins and frowns upon long lunch breaks, then your incentives should mirror that approach. Example : A national discount clothing retailer decided to recognize top sales associates by giving them a 2-liter bottle of soda at their monthly team meeting. Just avoid paying too little.

Incentives 184

Incentives Incentive Salary Pharmaceuticals 184

The Brooks Group

FEBRUARY 21, 2020

Better profit margins. They need training and support to ensure their sales negotiation goes smoothly and provides the outcomes you want. Don’t leap to discounts. For many salespeople, the first impulse when faced with objections is to offer a discount. Sales Meetings Sales Training Greater efficiency.

Objections 72

Objections Negotiation How To Discount 72

The Pipeline

MARCH 6, 2012

In these times of shrinking margins and diminishing returns, Mark’s insights will change the way you think about discounting, price, negotiating, and, above all, the all-important concept of value. Sales Training. Dave Kahle – Sales Training. From The Heart Sales Training Blog. Sales Force Alignment.

Pipeline 212

Pipeline Hiring Top of Funnel Cold Calling 212

Jeffrey Gitomer

DECEMBER 13, 2012

Trying to lure customers with the size, discount, and sale of their “pre-Christmas” then, based on social pressures, changed it to a “pre holiday” extravaganza. This will require that you pay them more – train them more – and provide a work atmosphere that both employees AND customers love.

Retail 217

Retail Hiring Margin Advertising 217

Sales and Marketing Management

SEPTEMBER 17, 2017

If your company lives and dies on razor-thin margins and frowns upon long lunch breaks, then your incentives should mirror that approach. Example : A national discount clothing retailer decided to recognize top sales associates by giving them a 2-liter bottle of soda at their monthly team meeting. Just avoid paying too little.

Incentives 166

Incentives Incentive Salary Pharmaceuticals 166

Hubspot Sales

JANUARY 7, 2019

Clearly identifying these areas for improvement in the performance review will provide points to work on during any coaching or training after the performance review. Relies too heavily on discounts, resulting in lower margins. They might take on additional projects, train other reps, or tackle their team's reporting.

Sales Management 132

Sales Management Quota Margin Hubspot 132

Mereo

FEBRUARY 23, 2022

Whether you believe these inflationary trends are transitory or longer lasting, as a business selling goods and services to other businesses you are likely to be raising prices to recover rising wage and supply costs and to try to maintain your margins. Here are five key areas to focus your teams’ efforts. cross-sell or up-sell).

Margin 45

Margin Customer Objections Face-to-face 45

Customer Centric Selling

NOVEMBER 17, 2014

By Frank Visgatis, President & Chief Operating Officer, CustomerCentric Selling® - The Sales Training Company. When we conduct sales training workshops , our goal is equal parts skills transfer and equal parts behavior modification. They have implied they have the power to grant that discount.

Discount 81

Discount Negotiation Margin Education 81

SBI Growth

NOVEMBER 25, 2013

For example, making the number by discounting heavily hits your goals. But selling value allows not just revenue but margin to be considered. Training, piloting or even taking on extra responsibility (i.e. But to get promoted, the rep must do it correctly. That’s profitable and good business. open territory) is met in stride.

Promotion 297

Promotion Construction Hiring Scale 297

Crunchbase

JANUARY 26, 2021

Around 70 percent of organizations, according to Salesforce , are now training reps to sell from home. Discounts are a brilliant way for companies to connect with clients who are struggling with the extra pressures imposed by 2020. However, the discount path might not be the best way to generate new sales for your team.

Trends 98

Trends Social Media Discount Decision Maker 98