Thoughtful Thursdays – Sales is simple, but not easy
At a basic level, sales is simple. Someone has a need, another has a product or service that will satisfy that need and a sale is made. Easy as pie.
Along came competition and what was once easy became difficult. Competition affects everyone. Price and quality became factors to consider when making a purchase as well as a sales. Those with the need demanded more of the growing list of suppliers and cost reduction rose to the top of the “to do” list.
When you encounter what seems to be a low ball price, ask your self “Why?”. You can expect businesses that offer similar products and services to have the similar costs. Assuming that quality and delivery are comparable, consider the following about the competitive offer in order to help answer the question:
- Is it a one time offering?
- Is it an attempt to clear excess inventory?
- Have they found a way to significantly reduce costs?
- Do they need the business to for cash flow reasons?
- Do they provide other products and services to the customer where margin dollars are high enough to offset the low price?
- Are they financially sound?
When was the last time your business operations were scrutinized and reviewed? Are your costs in line with the competition?
In many cases margin dollars can be maintained or regained through analysis and improvement of operational processes. It may take some work, but if your competition has found a better way, they will leave you in the dust if you fall behind operationally.
Sales may not be as easy as it once was, but the principles remain simple.
Good selling,
Richard
Have a question about sales? Contact Sakanashi and Associates Inc. and I will be happy to respond.
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