Build your professional network on facebook via our app Go to app
 
<< Prev  3 of 19 in Topic  Next >>
Topic : Impact of recession on IT sales
  Rate : 
 

Is Holding Onto Price in a Down Economy is right pricing strategy for sales?

Created by : Mrigena Ray, Sales/BD Manager, IBM  | 04 09 2009 10:48:25 +0000
Industry : IT ProductsFunctional Area : B2B Sales(Sales & Marketing)
Keywords : sales sales people holding pricing strategy discounting down economy
Activity:  337 views;  last activity : 07 06 2010 20:18:09 +0000

In today's scenario sales professional believe that holding onto price in a down economy is right pricing strategy for sales as it create win-win situation under such circumstances.

  
 Refer 61
Share
 
 
  Rate : 
 
 
Yes Vs No
7
 
 
 
 
5
3
4
Support   Support
Top Argument
3
0

In my opinion holding on price in a down economy is not easy, but it is doable, and, in fact, it is essential! When sales professionals believe in their product or service with complete conviction, focus on the immediate ROI, and ask the questions necessary to uncover the customer's greatest need, resorting to the mislabeled sales strategy of offering a discount will be unnecessary. Maintaining your pricing integrity in a down economy is truly a winning strategy because, in the end, profit margins are higher, the ability to service a customer is better, and the confidence of the salesperson is greater. Especially in today's marketplace, that's worth pursuing.
By Mrigena Ray, Sales/BD Manager, IBM  04 09 2009 11:00:25 +0000
 
Top Argument
3
0

Discounting on price is not a sales strategy. It's an impulsive move made by desperate salespeople. In a tough economy, customers think and expect everything is going to be discounted. Because of this, salespeople feel it necessary to oblige the customer to close the deal.Does it really happen?
After sometime,the discount ends up altering the attitude of the customer who now believes the real value of the product or service they bought is the reduced price and not the full one.
It means holding is not a good pricing strategies under recession.
By Mohit Aggarwal, Sales/BD Manager, Oracle  04 09 2009 11:23:15 +0000
1
0

Yes, it's absolutely right Mrigena it is necessory to hold the price even in recession, otherwise there is no end to cutting down the pricing and sell at breakeven or even on cost to cost price. which'll lead to making further losses.
By B.Mehernath , Marketing & Technical Head, Bondit Construction Chemicals Pvt. Ltd.  | 05 11 2009 13:47:05 +0000
1
0

Yes to keeping the prices. No to reducing the prices.
It might be appropriate to include more features at the same price during the slow-down economic conditions.
By Ahmed Sultan, ITC, Airline Consultant  | 05 04 2009 17:37:43 +0000
0
0

 
By deepak saxena, showroom manager, simphony  | 08 03 2009 10:53:28 +0000
1
0

I feel that sales professional must keep in mind that there will be times when they must be willing to walk away from an order. Although this can be scary and risky during these tough times, it's essential for them to believe they don't need every sale. Not only does walking away help them realize that there are other opportunities out there, it also serves to strengthen their resolve to hold their line and maintain the value of what they are selling.Than only we can handle the situation not just by holding.
By Shashi Kumar, Sales/BD Manager, Sapient Corporation  | 04 14 2009 06:05:59 +0000
1
0

Yes I agree with you Mohit,

I think that it is very necessary to correct the salesperson's mindset is to help them believe in their ability to close the sale. Competent salespeople know why the customer is looking to buy and are able to capitalize on the needs the customer has disclosed.They need to ask the right questions and then listen to the responses. Then they will be able to capitalize on the information provided them.Not just providing Discount on the product.
By Ramdas Pawar, Sales/BD Manager, Flex  | 04 14 2009 05:53:13 +0000
Argue for "Yes"
Argue for "No"
 Found the debate "Is Holding Onto Price in a Down Economy is right pricing strategy for sales?"  interesting ?  Suggest to your connections and communities  
India's Leading executive search firm
Viewers also viewed
The country's largest hypermarket chain Big Bazaar, part of the Kishore Biyani promoted Future...
 
1021 referals 28 arguments, 791 views
Support the price rise. vs Do no support the price rise.
 
269 referals 15 arguments, 4793 views
Indian MBA vs International MBA
 
452 referals 18 arguments, 223 views
more...  
Recent Knowledge (4)
WE HAD A GOOD NUMBER OF INVENTORS WITH GREATER VISION ABOUT THE SOCIETY. INVENTORS HERE NEED NOT...
 
2 referals 2 arguments, 97 views
These days as I switch on the tv or radio or look at a hoarding I do feel that power of ads I...
 
3004 referals 23 arguments, 482 views
more...  
Sponsored Jobs
More From Author
No matter they will continue their outsourcing business but we shouldn't forget that our income is also dependant on them. If tax breaks are stopped, it will at least effect the income of Indian IT industry which may not be a good sign for us.
In my view, throughout the worldwide markets have increased demand for Consumer Electronics, IT and Telecommunications and are  continuing to expand in spite of the crisis had occured. By more technology, customers are spending more which helps the...
In sales the most difficult part may be to create and maintain relationship with the customers depending on the product. Preserving those relationships can be good for referrals and future business, as well as making the time spent on the project...
more...