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Don’t Let Them Change You

There are many good reasons to turn down business that you could win. But the most important reason to turn down business is when taking it would mean unintentionally changing your business strategy.

Some sales organizations end up changing their strategy to lowest price without meaning to. They start selling to prospective clients who sell lowest price to their own clients and customers, and just like that, these unsuspecting sales organizations are part of the lowest price value chain. They rationalize the decision to take the low price (and low margin) by extolling the great virtues of volume and revenue, underestimating the impact it has on their business, the additional time it takes to serve their large, low margin client over their smaller, higher margin clients, the challenges of executing without the necessary profit to do so. I once heard someone jokingly refer to this strategy by saying, “We’re losing money on every transaction but we’re going to make it up on volume.” The additional volume isn’t a benefit when it crowds out new, high margin clients.

You are better off selling to your dream clients, the clients for whom you create breath taking, jaw dropping, earth shattering value. By creating the value you are meant to create for clients who benefit from it, you will be allowed to capture an appropriate portion of that value. If lowest price isn’t your strategy, winning clients on price will change you . . . for the worse.

Agreeing to provide the lowest price isn’t selling. It’s the opposite of selling.


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Comments

comments

  • Zach Doty

    Thank you, Anthony. I have been following your blog for a few months now and I really appreciate your sales advice :) You’re spot on with this one.

    • http://www.thesalesblog.com S. Anthony Iannarino

      Thanks, Zach! Welcome to our little community here.

      A

  • Pricing News

    Greatest pricing quote I have seen in a long time – well said sir !!!
    “Agreeing to provide the lowest price isn’t selling.”

    • http://www.thesalesblog.com S. Anthony Iannarino

      Gracias!

  • Holly McIlwain

    Short and straight to the point, great points too. One of my companies has large seasonal swings. It’s always tempting to change what works when sales are down. Without truly understanding the cause and effect those changes may be fatal and I’ve seen many fail in the past 10 years we’ve been doing this. If business isn’t there due to a certain factor, then changing an unrelated strategy won’t work and can in fact put you out of business. Thanks Y’all.

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  • Chuck Shaughnessy

    Excellent and succinct but on point. My experience is that few sales people buy into this philosophy – maybe it is driven by how we incentivize them, maybe its just how certain people are wired. Any thoughts on how to get broad organizational buy-in to turning away customers as noted here?



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