Smarter Pricing: How to capture more value in your market

Sales force giving it away?

In industrial markets, buyers may not accept the set list prices and expect to negotiate. Specifications may vary according to buyers’ needs. The logic follows that the salespeople should carry out the negotiations. They are most familiar with the relevant benefits provided to the buyer and the value to their business. This knowledge should achieve maximum value capture. In addition, allowing the salesperson to negotiate discounts enables the deal to be closed on the spot and permits rapid responses to changing market conditions. It sounds positive.

There are positive aspects: sales negotiations are time efficient, preferred by customers who feel they are obtaining an individual deal and the authority can be motivational ...