When launching a new pricing initiative, such as focusing on incidentals, you may discover that coming up with the numbers is only half the battle. Getting your sales people to use the new pricing structure can be even more difficult. We work with distributors and manufacturers from all industries every day to set pricing, optimize margin AND train sales teams. Here are our tips for backing up your sales people to set the right price.
- Involve sales people early. Nothing generates more fear than being left in the dark.
- Rely on your sales people to identify sales that are price sensitive, while you take strategic control over pricing incidentals.
- Get it right! To borrow a story from another part of your business, consider this: Employees are more likely to use and like new ERP software if the go-live transition event goes smoothly. However, a badly run go-live event can generate employee resistance and negative attitudes about the software for years to come, even after problems are resolved. The same applies to pricing. Your ability to raise margin rests on your pricing system being credible from the start.
- Measure results. Your sales people will trust the pricing strategy when you can show them the results. Furthermore, ongoing feedback will ensure that prices stay current and trustworthy.
Profit2 has helped many large Distributors and Manufacturers build margin and earnings for over 10 years. Click Here to Request Full Information on how you can increase margin by providing better pricing guidance to your sales people.
