28 November 2006

Encourage your sales people to think profitability

If you incentivise your sales team on gross margin then you will encourage them to think about the sales price in an entirely different way. Last minute discounts will have a dramatic impact on their commissions.

Similarly, encourage your team to think creatively after they ask the target what the budget is for a particular project. Instead of trying to fit the purchase within the stated budget, get them to think of price ranges -- selling up, rather than down -- based on your firm's existing price models. If the value is sold correctly, the client may well be willing to invest more than the stated budget.

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