The rule of marginal value is the value you have in the marketplace over and above the competition. The selling process begins when you understand your value in the marketplace and ends with how well you translate that value. If your salespeople can’t translate your value to your customer, they will be forced to use price as the only value on which to sell.
When your salespeople are selling your product or service…
Are they being forced to sell on price?
Does price seem to be the only thing your prospect is interested in?
Do your salespeople constantly come to you to get a better price, “to close the sale”, and then you don’t get the business?
Are you constantly sacrificing margin to get the sale?
Do your customers view you and treat you like a commodity… and your salespeople do not know how to respond?
Do your people freeze when they have to ask for $$ money or translate your value?
When your prospect says, “Your price is too high”, do you salespeople handle it or do they fold?
Have you ever won business when your product was not the cheapest? Then how come this does not happen consistently?
Is price really the problem?
Do prospects/customers really buy on price…or is it a series of accidents when they’ve got an order when you weren’t the “cheapest”?
Do they tell you… you’ll never win when you don’t have the lowest price?
If you recognize two or more of these problems, then you have a problem selling on price. Now that you have identified the problem, the next step is to identify the solution to address this problem.