Five Myths About Price and Discounting

Pipeliner

I can’t think of any concepts more misunderstood than price, pricing, and discounting. Let’s discuss five myths about pricing, and its Mr. Hyde alter-ego, discounting. Discounting is only going to convince your prospect to doubt the numbers. Mara and Roriello, in Harvard Business Review, studied an even larger sample and found a 1% drop in average price would cause a 1 % drop in profit. Myth #5: You can discount for “one time”, or for a “limited time”.

SaaS sales negotiations 101: How to respond to discount inquiries

Close.io

Prospects will sometimes reach out and ask for a discount before they even sign up for a trial. Instead of debating if you should or shouldn't offer them a discount right away, you need to refocus their energy on what really matters: your product!

How to Discount Less Often When Price Pressure is High

RAIN Group

They'll expect you to discount. Nearly all organizations negotiate or discount their stated list price to some extent. In fact, in our Top-Performing Sales Organization study, we asked about the frequency in which companies discount. Results showed that only 7% of organizations never discount. With more sales going through purchasing departments, you're bound to face price pressure on almost every opportunity.

Case Study: How a Company Hurt its Business with a Change in the Comp Plan

Sales Benchmark Index

The CEO was upset with the rampant discounting used by his sales team. This is a story of how a bad comp plan can ruin a sales force. In 2011, P&O Cruise lines cut is commission rate from 12% to 5%. So he cut the commission rate in half. The sales force revolted and sales plummeted.

For Sale, Not On Sale - The True Cost of Discounting and What to Do About It

The ROI Guy

By Mark Schlueter & Tom Pisello More sales execs are revealing that discount pressures are at an all time high, and as a result, they need more transactions than ever just to make the numbers. There are several reasons why prospects are demanding higher discounts and making it harder for you to achieve your goals: Buyers are more empowered, with on-line / social resources readily available to research your competition and obtain competitive pricing.

Best Way to Reduce Discounting: Better Negotiating or Value Selling?

The ROI Guy

There is more pressure than ever on suppliers to lower their prices and offer steep discounts. Recent studies indicate that the average discount levels has risen to 20% per deal (IDC), but we find that many solution providers would be happy if that were the level of discount they were providing. And Procurement is getting way more involved in every transaction, with specific incentives to extract discounts from every vendor proposal.

5 Steps to Close More Sales

The Sales Hunter

We’ve all seen studies that show the importance of following up, and yet so few people actually do it. Blog Closing a Sale Professional Selling Skills Prospecting closing a sale discount discounting price prospect prospecting sales prospecting sales techniques

The Importance Of Organizational Culture For Sales Teams, with Justin Hiatt, Episode #103

Vengreso

Receive a 30% discount on your registration. Receive a 30% discount on your registration. Subscribe to Selling With Social. Apple Podcasts | Stitcher | Google Play | Google Podcasts.

Do you understand the impact of pricing reductions on profit?

Sales Training Connection

In a Harvard Business Review post, Rafi Mohammed reviewed an interesting McKinsey study on the relationship between price increases and profits. In the study McKinsey worked with the Global 1200. The key to the McKinsey study was of course – “if demand remained constant.”

Book Review: The Challenger Sale | Sales Motivation and Sales.

The Sales Hunter

In the book, the authors reveal the findings from their extensive studies regarding the sales process. Their study breaks salespeople into 5 distinct categories and one of them is “the challenger.” discount. discounting. About. FREE Resources. Hire Mark. Client List. Testimonials. Client Login. Mark Hunter. Client List. Testimonials. Speaking. Mark’s Insights on SALES MOTIVATION. Mark’s Insights on PRICING. Mark’s Insights on PROSPECTING.

Gartner Spending Trends Demand that IT Sales and Marketing Must Challenge the “Do Nothing” Prospect to Achieve 2012 Success

The ROI Guy

In the first study, Gartner lowered their 2012 worldwide IT spending growth forecast by 1/3 rd. In the second study, Gartner released the results of their annual CEO and Senior Business Executive Survey , to measure sentiment from the C-suite on IT spending and strategy. If you tally the impact of each, you find that the impact of Frugalnomics - the “do nothing buyer” , lengthening sales cycle and increased discounting - is costing you millions each month.

How to Use Email Autoresponders to Increase Your Sales

Sales and Marketing Management

After a week, a new email is being delivered, showcasing the best links, blog posts and case studies of your brand. After a week and a half, a 20 percent off discount opportunity becomes available to your interested subscriber. Here’s a sequence example that you should study.

Yes, Gender is a Factor in B2B Buying Decisions: Selling to Men and to Women

DiscoverOrg Sales

Download our full study to see: who cares about pricing discounts. Download our complete study, 8 Key Differences in Selling to Women and Men: How Research Reveals How Gender Influences B2B Buying Decisions – for more insights that will win you business.

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7 Actionable Tips to Re-Engage Old Sales Leads

Sales Hacker

Use these tips: Study your previous conversations and find a pattern for insight. Case Study: Jake Jorgovan. Huge price cuts and discounts on an essential product for a period if your leads complete a simple game. Case Study: Valve Video Games. Price cuts and discounts.

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What do B2B Buyers Want (and Why Don’t They Like Salespeople)?

DiscoverOrg Sales

Martin on a comprehensive study of 230 B2B buyers , with the goal of pointing the spotlight on buyers themselves. Download the free B2B Buyer Persona study in full. From the study: “Overall, study participants rated 12% of salespeople excellent, 23% good, 38% average, and 27% poor. This is a disheartening statistic that no amount of product features or discounts will change. Read the whole B2B Buyers Persona study for free.

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Top Priority: Retaining Top Sales Reps

Sales Benchmark Index

Jerry’s finance organization has implemented an internal process to manage discounts. A time study can pinpoint the activities that drain hours from sales efforts. But a simple time study be just as effective. Here’s how: Download the free SBI Time Study Template.

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Sales Operations: The Guide They Never Gave You

InsightSquared

Finance and management studies gave you models to take into the real world while our area did not. What are your common discount rates, and do they vary by region or vertical? “What was your first job?”. It’s one of my favorite questions to ask a fellow professional in sales operations.

Low MQLs? 7 Digital Marketing Tricks to Keep Leads Coming Back for More

DiscoverOrg Sales

Get the study: Why Didn’t They Buy? How about a free month of service, a free sample, or a limited-time discount? social proof (“Check out all these 5-star reviews!”), or a time-based discount. It’s easy to give up after a few tries.

The Plain-English Guide to Cash Flow Statement

Hubspot Sales

A statement of cash flows studies operating, financing, and investing activities to show where your business’ money is coming from and where it’s being spent. Discounted Cash Flow. Discounted cash flow (DCF) is a method used to evaluate a potential investment opportunity.

The Challenge Sale Can Be Mistimed

Sales and Marketing Management

For the study, we collaborated with Dr. Nick Lee, a professor at the Warwick Business School in the U.K., The study. At the outset of the study, participants were instructed to imagine they ran a small business and that two years ago, they needed to do something to improve employee satisfaction and retention rates because employee turnover was high and it was too expensive to keep hiring and training new people.

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Learning From “Lazy” Salespeople

Partners in Excellence

Lazy sales people don’t win by discounting. They realize the more they discount, the more work they have to do to make their numbers. We need to study them and learn from them. “Lazy” sales people are among my favorites–let me qualify that. “Lazy” sales people who always make their goals are among my favorites. “Lazy” sales people, or at least those who seem to accomplish a lot with minimum effort have broken the code.

The Worst Phrases Salespeople Can Use in a Negotiation and What to Say Instead

Sales Hacker

But if you need more reason than that, here are some findings from a two-year study of sales negotiations from Huthwaite International : Companies with no formal negotiation process had a 63.3% Any mention of a discount should trigger a pivot right back to this hot-button.

Does Your Sales Incentive Plan Drive Customers Away?

Sales Benchmark Index

Reps reworking discounts and promotions endlessly to game the comp system. The rep bakes it in using discount dollars just to score the incentive. However, these studies focus on customer attitudes. Unlike marketing studies, customer interviews ‘map’ the buyer’s journey. Time Study. Time studies are intrusive. The purpose of every incentive compensation plan is to influence the actions of sales reps.

Is Failure an Option for Your Account Based Selling Teams?

No More Cold Calling

CSO Insights’ 2017 Best Practices Study revealed that quota attainment—averaged across all geographies, industries, and company sizes—dropped from 63 percent of salespeople in 2012 to 53 percent in 2016. Plus, we become flagrant discounters.

Low MQLs? 7 Digital Marketing Tricks to Keep Leads Coming Back for More

DiscoverOrg Sales

Get the study: Why Didn’t They Buy? How about a free month of service, a free sample, or a limited-time discount? social proof (“Check out all these 5-star reviews!”), or a time-based discount. It’s easy to give up after a few tries.

Move Over Alexa It’s Time to Re-Humanize the Sales Process

Vengreso

In its 2018 – 2019 Sales Performance Study report, CSO Insights revealed that 53% of sales professionals are missing their sales quotas. Look below for a discount code for the event. Register for the event at [link] and use the discount code MARIO at registration for a $250.00

6 Ways to Re-Engage Inactive Email Subscribers

Zoominfo

But, studies show that on average, an inactive subscriber is worth 32% of an active subscriber ( source ). Exclusive offers and discounts. Offer a unique discount code, an exclusive free trial, early access to a new product, or some other promising incentive.

5 Ways to Improve Customer Relationships Quickly

Zoominfo

Build an online knowledge base: A Forrester Research study shows customers make the most frequent use of knowledge bases compared to other self-service channels ( source ). Knowledge centers often include videos, demos, tutorials, white papers, case studies, blog posts, glossaries, and more.

How to Read Your Audience and Structure Your Multi-Channel Marketing Accordingly

Sales and Marketing Management

Studies have shown that some people stress out when they travel. Studies show that businesses that understand their audience’s intent get more traffic and revenue than those who stumble in the dark. But, according to one study, companies that rely solely on demographics risk missing on more than 70% of potential consumers. Studies show that brands that understand and respond to intent are better positioned and are considered more useful.

“I won’t pay more than $X!”

Partners in Excellence

Sales people come back pleading for a discount to match the customer expectations. ” “They understand the concepts and they’ve read the case studies,” replies the sales person, “They think they should achieve savings in the same range as our case studies.” We were doing a deal review. It was a big deal with a prestigious customer. Procurement was involved.

The Beginner’s Guide to Marketing for Financial Advisors

Zoominfo

For example, if a client refers you to a friend who ultimately signs on as a client, they both receive either a gift or a discount on your fees. In order to make your services more attractive, consider reaching out to top performing clients to create case studies.

Is Who You See Who I See?

Bernadette McClelland

You’re saying I won’t get the discount if I don’t sign today? ‘Oh Cynicism today can be a major mask for depression and a recent study of over 622 people published in the Neurology journal of 2014, linked ‘cynical distrust ‘with dementia.

Defining the Real Buyer

Sales and Marketing Management

For example, one study by Marketo found that 79% of buyers “are only likely to engage with a brand… if those promotions are directly tied to how they have interacted with the brand previously.”

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30 of the Best SaaS Partner Programs (and Why They Are So Good)

Allbound

Study them, learn from them, and apply their best practices in your own partner programs. Whether you’re a freelancer or an agency, they offer a wide variety of perks , including discounts on products and services from leading software companies.

10 Essential Selling Skills Every Sales Rep Needs in 2018

Hubspot Sales

In order to answer these questions and find out what separates sales winners from second-place finishers, RAIN Group, a sales training company , studied over 700 B2B purchases from the buyer’s perspective to find out what really happened in their buying experiences. Selling Skills.

The Best Referral Programs Start with a “Referral Culture”

No More Cold Calling

Sales leaders discount the time, energy, and investment (yes, investment) that it takes to execute the best referral programs and to clock repeatable, measurable referral results. A recent study by Insperity Solutions and the Sales Management Association validated this sales coaching paradox.

Join Us for UNITE 2018

DialSource

Discount promo code “DialSource@UNITE” for $50 off registration fees. The AA-ISP has negotiated a discounted room rate at Renaissance Atlanta Waverly Hotel & Convention Center.

September Referral Selling Insights—Get Started for $47

No More Cold Calling

“I don’t discount, and I don’t run fire sales.” So now I’m offering one last chance to get 12 hours of my best advice on referral selling for a discounted price of $47. I’m conducting a study on referrals, and I need your help.

Flattery will get you fired

Selling Essentials RapidLearning Center

For all these reasons, leaders know they need to discount the advice they get from these quarters. But a recent study found that many fall prey to flattery anyway. The size of this effect is substantial,” write the study authors.

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10-Point Inspection for Top Sales Performance

Sales Benchmark Index

Studies show that these managers are significantly more likely to pull the trigger. Make it easy to calculate the impact of discounting on commissions. January is over. The first monthly commission statements will soon be in your sales reps'' hands.