Thought I'd pass on a solid report from McKinsey. It's from 2005, but it's still valuable content - like most of their material.
The gist of it is not resigning yourself to price cuts when your customers demand more. The more you collaborate on solving their true problems, the less price is an issue.
Your product/service may only be one puzzle piece to solving their real business issue. Go the extra step, help your customer solve the entire problem and you'll see real success. This doesn't mean that you need to know all of the answers; just honestly try to help them find the appropriate solutions that are complimentary to your offering (assuming that your offering is the right solution as well).
Negotiation is part of any sales/buying process but you do not want to be known as the low price option. Price is rarely a true barrier to purchase - unless they truly do not have the money, then I would contend that your targeting was off.
It's hard to grow profitably if you're not collaborating w/ your customers.
technorati tags > strategic, selling, b2b, mckinsey, commodity, price, services, pricing, value
The gist of it is not resigning yourself to price cuts when your customers demand more. The more you collaborate on solving their true problems, the less price is an issue.
Your product/service may only be one puzzle piece to solving their real business issue. Go the extra step, help your customer solve the entire problem and you'll see real success. This doesn't mean that you need to know all of the answers; just honestly try to help them find the appropriate solutions that are complimentary to your offering (assuming that your offering is the right solution as well).
Negotiation is part of any sales/buying process but you do not want to be known as the low price option. Price is rarely a true barrier to purchase - unless they truly do not have the money, then I would contend that your targeting was off.
It's hard to grow profitably if you're not collaborating w/ your customers.
technorati tags > strategic, selling, b2b, mckinsey, commodity, price, services, pricing, value
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