How to avoid the trap of price competition?

We launched in 2005, price competition study was to provide a real hard data to help understand the various industries, the U.S. sales organizations of all sizes face difficult problems.

The biggest problem is price competition. In the current global economic situation, the sales staff to bear unprecedented price competition pressure, which mainly come from domestic and foreign competitors. If you take price-cutting strategy, the sales profit will drop, resulting in declining profits, lower sales remuneration.

More seriously, the face of this downward pressure on prices, sales personnel had to yield to compromise and reduce the sales price, to compete with rivals. However, after the purchase, customers should continue to demand lower prices discount, resulting in a vicious cycle of price reductions. Therefore, the bargain sale of the dialogue process has become the core of the fundamental theory of value can not be reflected here.

"Action marketing" is a management and implementation of the marketing research system. As the founder of the system, TheSalesBoard large number of customers in the organization recognized the existence of this vicious circle. Price Competition in 2005, the original intention is to provide a consistent statistical theory of data, to clear all sectors involved in sales and the company's future prospects of many problems.

Issues include:

1. For many U.S. companies, price competition, the situation will become more and more bad?

2. Price competition is not a sales force to promote the company and the key into the vicious cycle of discount factors, which affect or threaten corporate profits, leading to self-depreciation, a cheap product?

3. The main factors leading to these problems is what?

4. What should be an effective strategy to deal with this difficulty, in order to protect sales profits?

The last question on the healthy development of U.S. companies and sales prospects for the future of the most crucial career. To know that if the sales process evolved into a race with competitors on price, there is no need to employ a sales staff.

From the overall market perspective, changes in products and services faster and faster, making it difficult to respective products and other products and services in the "Features + advantage" to be based on the distinction. Some value-added strategies such as extended warranty, "cooperation" projects have been widely adopted by many businesses. Services and value-added features, the customer view, should be value for money. If the sales professionals can not find an effective way of selling, the sales of their products and services with other businesses distinguishes it, with the added value of such services is futile. No business, there is no future, pay more do not sell!

Sales staff can "sell their own values," to protect their profits, while the factors affecting this process is critical, therefore, the ultimate goal of this study is to clear these factors.

In this study, we have a great discovery, one of the most critical factor is the sales staff's individual behavior and habits, rather than price factors. In other words, to avoid price competition, to prevent the slide into cheap merchandise sales is not about how the sales approach is adopted.







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