In pricing and sales negotiations, the vast majority of people are haunted by the “ghost of prices past.” This is because the only method for truly determining if a price point is a market competitive price occurs at the transactional level, and this analysis requires real time knowledge of market conditions, product state, margin erosion, M&A activity, and at least 142 other measurable variables. So how can you know for certain that your price is competitive?
In this article, the author addresses sales people and explains how individual pricing choices, made to win deals or accomplish other types of gross profit or gross margin goals actually affects their personal sales performance. He also provides best practices for using pricing intelligently and profitably in sales.
In this article, the author explores why it is so important to establish the relative value of a product, or the value of a product from the customer’s perspective, before setting product prices and strategies.