Don't discount your sales prices

When times are tough, the temptation is to consider dropping your prices. Don’t!

If you drop your prices you are only adding to your own difficulties. The table above shows the impact small changes in the price you sell at can have on your business.

Print it out from the screen or download it here

If you own a SPAR retailer consider a Subway franchise. If you are a huge department store, how about adding an old fashioned  gents hair cutting and shoe shine shop.

Maybe this is a step too far though?

We are faced with uncertain times and many people are  fearing the worse about their ability to sell their products and services in his recession. It may not be easy but there are some proven ways that, if you work smart, will guide you in the right direction.

One of the key areas that I have worked with sales teams over the last few years is the ability to develop their ‘emotional’ skills in selling.  No – this is not about removing their own emotions to overcome their fear of rejection. It is about developing the ability to appeal to the emotional needs of the potential buyer – whether they are selling to business or consumers.

When selling in a recession this is more important than ever. Especially if you are selling to consumers. Consumers are proven to be seeking out confidence and escapism. Businesses tend to seek out products and services that they have confidence in and gives them confidence for the future.

Think what this means to you?

How can you inspire confidence and appeal to the desire for escapism with your products and services. In my sales training business I have seen an increase in the number of enquiries from ‘stressed’ sales people and sale managers. They need things that will give them confidence in themselves, their products and services and they are also looking for confidence in the people they turn to help them through this period.

Beware: If you are a sales manager or a small business owner beware of your staff and your own desire for escapism. The desire for escapism to get away from the stress of the current climate can blind you to what you need to be concentrating on. Focus on the hard reality. Ensure your value proposition is sound, ensure you can develop confidence, be a master of your sales metrics and focus on what you know works. Don’t settle for the short term emotional ‘hit’ that can come from your desire for escapism. Things to watch out for in your team and for you are:

• Increasing contact with ‘friendly’ prospective clients that have no intention of buying
• Spending too much time with existing ‘friendly’ clients who have no requirement for you to add value
• Short term activities such as ‘tidying the desk’, catching up on paperwork, – anything that keeps you away from business generation

Make sure you benefit and do not suffer from the recessionary desire for escapism and confidence. If you want to know what sells in a recession look at my blog or my articles on this site  because in part 2 I will give a run down on three key areas proven to sell  in times of a recession.

See you then……

1. The fact that I received it means that Virgin Wine are head and shoulders over the 3 or 4 competitors I also checked out a few months ago.
2. It is clear they have systemised sales process that tracks every prospective customer and that they regularly have ‘touch points’ to re-activate me as a customer.
3. The tone of the email is superb. It is written in a friendly, one-to-one manner that speaks directly to me.
4. I was made an offer that I could not get on their web site – it is an incentive to take action.
5. As a human being I naturally have questions and objections floating around my head as I am reading the email. The writer of the email (because I don’t actually think Rowan would be emailing me) understands buyer psychology superbly and has answered many of the common sales objections upfront. With extremely persuasive points too.
6. Just to cap it off there is a full money back guarantee — a no quibbles refund. How could I lose?

I would say that it is an absolute certainty that I will buy from them again. Maybe not today but sometime soon. It is almost a shame to do so as I will no longer receive their follow up offers and emails. I would bet they have a few years worth already planned into their system. This is not the best customer reactivation letter I have been on the receiving end of. About 22 Years ago I was in one of those book clubs that Rowan mentioned in his email. I did buy a few books every year and was in the main happy with them as a company. Along came the internet and everything changed. When Amazon became my favorite shop I no longer needed the book club. Did they give up on me? No!! A few times a year, I still get mailings from them offering me ‘spectacular’, ‘limited time offers’ for books and DVD’s. That’s persistence considering I haven’t bought from them in 20 years. What can you learn from this if you want to sell your way out of a recession?

1. Begin sending out customer activation letters and emails to everyone who has enquired within the last year and has not bought.
2. Make them an offer they just cannot refuse.
3. Answer any niggling doubts they might still have before they become major obstacles.
4. If you are in a business where it is viable make sure you include cost/profit justification of your services.
5. Plan for the future and begin to make this a routine part of your sales system so that you never lose contact with your prospective customers.

Oh and something slightly off topic — Invest in sales and sales management training. There is no better time to invest in training than when the economy is in a downturn. A small investment in sales training will ensure you stand head and shoulders above your competition.