On July 21, 1969, Neil Armstrong became the first person to walk on the moon. The one small step that he took was one of the many steps in a long process that managed to get him to that spot 230,000 miles away. Most people remember exactly where they were at that moment. It was that one step that seemed to matter most—despite the multitude of steps in the process that came before it.
Now, pricing isn’t rocket science, even though it can feel that way at times… But, just like the moon landing, most of us tend to pay attention to one step in the process. For pricing, it’s that final price on the deal. That’s what we see in our spreadsheets and analyze in our toolsets. That’s what determines the margin we get and the overall success of our pricing efforts. But that final price is also the final outcome of a long process. And for most B2B companies, that long process is a sales process.
Trying to understand the sales process in your business may seem like it’s beyond the purview of pricing. After all, it’s often a different department—or at least a different team—that’s responsible for it. But when you take a step back, it’s easy to see that the sales process is the lynchpin that determines the success or failure of your pricing efforts. Everything hinges on it—from how customers perceive the value of what they’re buying to whether the right numbers are quoted on the deal.
An insightful diagnostic in the PricingBrew Journal, Finding Margin Leaks in Sales Processes, does a great job showing how you can identify and correct the problems that likely exist. But just as important, it discusses key reasons why you should take that first step to understand your company’s sales process:
- There are likely specific places where the sales process is failing or sub-optimal
- Spending time fixing the processes can improve outcomes across the board
- If you’re able to shift “blame” to the sales process, you likely create less conflict
- You might discover that groups outside of pricing or sales are the real problem
- You’re likely gain new appreciation for the challenges your sales team face
- Taking steps to understand the “craft” of sales can improve rapport with them
- Management could see you as more “strategic” and “focused on the business”
These are all great reasons why you should give your sales process a second (or first) look. I’d be willing to bet that there are margin leaks to be plugged and improvements to be made. But you first need to understand the ins and outs of the sales process.
You can’t get to the moon without focusing on the process it takes to get you there. In pricing, improving that process might not be a giant leap for mankind, but it can certainly mean a big leap for your revenue and margins.
Finding Margin Leaks in Your Sales Processes
Every sale is the result of a process. With any process, the quality of the final product is determined by the raw materials. This diagnostic helps improve pricing results by identifying root causes in your sales processes.
Getting Your Salespeople to Price Better
Chances are, the behavior of your salespeople will ultimately determine whether your pricing strategies are effective or not. In this on-demand training seminar, learn proven approaches and strategies for getting your sales team to price and discount far more effectively.
Revamping Sales Comp to Improve Pricing
In this on-demand webinar, you'll learn about the pros and cons of various approaches for infusing pricing performance into your sales compensation plan to reduce unnecessary discounting and boost profitability.
Tweaking Your Sales Strategy to Improve Prices
A well thought-out strategy can reduce pricing pressure and increase deal velocity. This guide explains how relatively small adjustments to your sales strategy in a few high-leverage areas can combine and compound to produce dramatic results.