70% of world-class organisations say that if they do give price concessions to customers, they always ensure they get comparable value in return, such as an extended contract or an additional warranty. This compares with only 19% of European firms, according to the 2009 Sales Best Practices Study from Miller Heiman. In other words, European companies are too ready to discount without getting anything in return. I’m looking forward to the UK-specific breakdown of this report which is due out shortly. It will be interesting to see if Brits are more or less likely to offer discounts or if we understand value any better.
The study, based on input from European and global sales professionals, analyses complex B2B sales environments to reveal the best practices of world-class sales organisations.
It’s so important that you first understand and really believe your own value. If you don’t then you are much more likely to devalue yourself, your offering, your firm by offering some form of pricing reduction. The best way to really understand your value is to ask your customers, conduct a customer value experience exercise. This is the first step on the road to creating a value proposition – note the word value – it’s not there for decoration, it really does help you create, articulate, believe and substantiate your value!
A free copy of the executive summary is available by calling 01908 519 615.