Sales Rep: “Our service only costs $125 per visit.”
Customer: “I’m currently paying $100 per visit.”
Sales Rep: “Then I can drop your price to $95 per visit.”
In your opinion, is this interaction an example of a skilled salesman? Does dropping the price of a product or service equate to a masterful sales technique?
I would argue it doesn’t take much skill or technique to make sales by just offering a less expensive option. That being noted, price-dropping can be an effective way to gain sales, but this technique should not be lauded as a sales skill.
Last Saturday my 7-year old son attempted to sell lemonade to our neighbors for $1 a cup. He soon realized this price point was too high so he dropped the price to $.25 a cup and effectively sold out of lemonade within the hour.
My son claimed the rush of lemonade sales was the result of him being a great salesman, but of course you and I know better. It was the price drop, not his selling prowess which accelerated his lemonade sales (In another post I’ll have to share how my discussion about profit margins went with my son).
Years ago I was talking with a pest control owner from Las Vegas who told me, “I don’t care how much my competitors sell their service for because I will beat anybody’s price.”
Surely there is a segment of the population who seeks out the best deals and will sacrifice quality over cost, and this Las Vegas business owner was absolutely killing that demographic. However, he also revealed corners he was forced to cut which enabled him to keep the lowest price point in the market.
Price-dropping has its place but should not be viewed as a sales technique. It’s mostly gimmick, linked to a compromise of quality.
I suppose my son and the Las Vegas owner would make great business partners as they shared the childlike business sense that by dropping price they were better businessmen and salesmen, when in reality neither was the case.
The real winners in these scenarios were the pest control seeking homeowners in Las Vegas and my thirsty neighbors.
Skilled sales reps don’t need to price drop. In fact, the mark of a great salesman is the ability to increase price without sacrificing production.
To learn more about how your sales team can increase sales without compromising price, visit my website at:
Email: [email protected]
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I recently received this message from Austin Sigl…a door-to-door sales rep for Vantage Marketing.
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I’m humbled by the kind words from fellow door-to-door sales reps.
Adam Smith, a former sales representative from Vivint. recently sent me the following message:
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It’s about that time! College students and door-to-door recruits everywhere are preparing to knock doors and make ridiculous amounts of money this summer.
Having been in the door-to-door game for 18 years, I’ve come to realize there are a few things you should do before knocking that first door:
1. Set a Goal: Not only should you set an overall sales goal but you should also know how many sales you need to make each month, week and day to achieve your goal.
2. Prepare for a Beat Down: Mental preparation for repeated rejection and daily discouragement is a must for door-to-door sales reps. Have the mindset that each rejection just gets you closer to your next sale.
3. Surround yourself with Success: Learn from others who have experienced success on the doors. Sales tactics, techniques and work ethic are just some of the skills you can incorporate into your own sales game.
If you want to maximize your earnings and learn how I sold nearly 1,200 accounts in one summer, learn more at:
On August 20, 2013, Von Miller received a six-game suspension from the NFL for violating its drug-abuse policy. This was just four days before the Denver Broncos preseason game versus the St. Louis Rams. My son Boston and I had tickets for this game to celebrate his 7th birthday.
We arrived early to watch players warming up on the field. I observed Von going through drills on the sideline closest to us, but I hesitated to bring this to Boston’s attention knowing that Von was likely focused on the game and not in the mood to interact with fans based on the news of his suspension earlier in the week.
Despite my hesitancy, Boston proudly yelled Von’s name and to my surprise he jogged over to us. Boston was quick to let Von know we were there celebrating his birthday and Von took off his gloves and signed them wishing Boston a happy birthday.
But Von’s offerings didn’t stop there.
After being pulled from the game in the 3rd quarter, Von took the gloves he wore during the game to several of his teammates for their signatures and then brought the gloves to Boston.
This was unreal!
To cap it all off, when the game ended, Von came over to us, took off his cleat, signed it, wished Boston a happy birthday and walked off the field.
I couldn’t believe the generosity of a man who had every reason to have contempt and anger in his heart due to his suspension.
Von Miller is the ultimate story of redemption…from suspension to Super Bowl MVP. But even far more impressive to me is the measurement of somebody’s character when the cards are stacked against them. Von proved he’s not only a champion on the field, but a champion off of it too.