“We got beat on price. We lost the deal.” This is an excuse that every executive or manager has heard.
I am amazed how often we let that excuse work. Don’t do it. If you do, you are part of the problem.
Think about it, if the above excuse is true, then you would have to accept that if you won the deal, then you won on price as well. That dog wont’s hunt very far. Even if you are currently the price leader, someone will always beat you in price.
The delusion works this way, if you lost the deal, it was price and if you won, it was value or relationship. Sound familiar?
If you are losing deal that you believe you should win, you have two choices:
- Continue to blame price and your competitors for taking deals that are “crazy.”
- Take a hard look in the mirror and begin to ask yourself some hard questions.
If you choose Option one, I can recommend reading some of the posts by Dana Manciagli on how to find a new job. You’re going to need it
Choosing Option 2 needs to include the following questions:
- Am I holding my team accountable? Is the problem me?
- Am a targeting the right market potential customers?
- To that person, are we differentiated?
- Did we educate them about value we bring throughout the entire buying cycle
- Are we willing to compete on price? If so, how much?
Two things you need to know to build a successful sales strategy:
- People buy things, Companies don’t. That means your sales process needs to be designed to educate and meet the needs of people. People don’t change that easy.
- People do not want to buy on price. They will default to price when you fail to differentiate on value.
Your whole Demand Management strategy inclusive of the sales process needs to be targeted on building and validating value throughout the entire process.
You have to not only educate, but validate that your product actually brings value. Don’t get into a group-think where customers “don’t get it.” That dog won’t hunt either.
An educated customer who sees value still wants a good deal, but they will always pay more.
If you want better results, change your product or your strategy. Start with strategy.
Let’s get going.