Click here to download the catalog as a PDF file. To view this site you need Adobe Flash Player and your browser must allow javaScripts. Go here to get the latest Flash Player. Selling in Tough Times “You told me our price looked good.” Joe knew he sounded upset, but he couldn’t disguise his emotions. This was a big order and it hurt to lose it. Nancy sighed. “I know. To tell you the truth, I expected you to get this job, but one of your competitors came in cheaper. Right now, I couldn’t afford to ignore that.” Sales Incumbents, be warned! When cheaper substitutes perform adequately, it is usually impossible to convince buyers to return to high-priced options. For example, a buyer decides to order their trade show sell sheets off the Internet to save money. The quality is lower, but they serve the purpose. In tough times, don’t waste any time mourning lost business that will never return. Accept the situation and look for a new opportunity. Sound familiar? A good customer gives you the opportunity to quote. You gave her a fair price. Everything looks good until the competitor’s bid comes in. It’s lower. You lose the order because of price, and the loss stings. Price matters when times are good. When times are bad, it frequently casts the deciding vote. It pays to look for new ways to deepen your understanding of price’s role in business because knowledge helps craft smarter selling strategies. You close more orders and leave less money on the table. You stop wasting time on accounts that claim to like your offering, but will never be willing to pay for it. Price matters because resources are limited. Spending less money in one area allows businesses to spend more in others. Companies have multiple goals, so tradeoffs are required. Companies make tradeoffs by balancing benefits against costs. On minor purchases where risks and tradeoffs are small, buyers decide quickly. They want to check the task off their list and move on. Often, the salesperson in the right place at the right time with a reasonable price gets the order. Benefits browsing Picture the customer walking into a store. The shelves are stocked with benefits. The customer grabs a shopping cart and goes to the aisle where your product is located. They select desired benefits, the ones they care about, and toss them into the cart. They don’t pick everything you offer. Some benefits remain on the shelf. The buyer goes to the register to check out. The clerk punches keys and gives the buyer a price. The buyer is told that some benefits are bundled together. Whether or not the buyer wants them, they’re included in the price. The buyer inspects the pile. Is there enough value there to make it worth the cost? There is always more than one way to get a job done. Substitutes lead to market competition. Companies create advantages by understanding customer needs and developing offerings that differentiate them P10 CANVAS AUGUST 2008