Why Your Sales Coach is Wrong
If all customers take these offers to heart, pretty soon a business that had no trouble generating revenue at full and fair prices will have trained their buyers to expect discounts. It will be decreasing revenue instead of increasing it from the same satisfied loyal buyers.
This makes me livid! There is no reason why discounting should be the default for every business or even most businesses. Sure, there are times when you make a special offer for a specific reason. You should not, however, be continuously offering discounts.
- You immediately and permanently reduce the value of your offerings in the minds of the buyers.
- Pretty soon the discount price becomes the regular price and then what? How low can you discount until you are losing money?
- There are always competitors who will undercut you. Then what?
- When you boost the value your buyers enjoy, they will willingly pay commensurate with the value. There is no ceiling on value but there is certainly a floor on price.
Remember this: the vast majority of businesses are not Wal-Mart or the like. Wal-Mart owns the low price market and they have the size and clout to force their vendors to reduce the costs of goods sold and to market like crazy. They make up in volume what they lose in margin.
If your business is not Wal-Mart, then stop playing in the low-price, discount arena.
Why else does this advice make me livid? My client asked this “sales coach” about her own loyalty as a customer. Her answer? “I only shop where I get coupons.” In other words, she has loyalty only to discounts. What is a person like this doing out in the world advising other companies on revenue growth?
This is a rep from a CRM company trying to make their product more valuable to their buyers. That’s fine as long as they are providing actual value, not stupid ideas that will cause revenue to decline.
Need advice on boosting sales? Get it from the thought leaders in the business, not from your small thinking CRM rep.
Avoid the Great Revenue Disappearing Act! Ask me about the 3 factors that create revenue security.