One of the most genuine dilemmas that companies are faced with is either to make product/services for which customers will be willing to pay a premium for, or to have a cost structure that will allow them to compete at a price that the competition will not be able to.
So, we got a lead, which eventually became a sales opportunity and after negotiations and going back and forth, the deal is finally done. What’s next then? Well, selling is no longer enough, because the relationship between a supplier and a customer rarely ends when a sale is made. On the contrary, in many cases, the way that the seller will handle the relationship after the deal is done, will most probably determine if the buyer is going to come back for more in the future or not.
One of the most difficult tasks that a sales manager is faced with, is whenever asked by the top management to provide sales forecasts. But why forecasting sales data should be such a problem? After all, the performance of sales teams is probably the most measurable in an organisation and even daily, the result of the activities of the salespeople is there for all to see.
Read more: How to Do Sales Forecasting Without Using a Crystal Ball
A common method that is used to determine the price of a product/service, is the competitor-based pricing model. This is a relatively straightforward process, in which basic research of the competition is required in order to define the price range, and is also considered a low-risk strategy, as the chances of going wrong are slim. So, everything is easy and the possibility of making a mistake is low, but is there a catch?
The idea behind “better-faster-cheaper” is widely known, but for those of you that are not familiar with the concept, the premise is that you can choose any two of the above, but you can’t have all three at the same time.