National Sales Center

Advice On How To Reduce Your Prices

Businesses struggle with the responsibilities to set appropriate pricing and profit margin targets. As a salesperson and businessperson, I believe anything can be sold at any price so long as you can justify that price with “added value”. Also, the price you charge must be cost justified against the problem you are solving. You can’t sell a $10 solution to solve a $5 problem. That said, one question still remains, When must you reduce your prices? I have some thoughts on reducing prices and what you must consider.

When To Reduce Prices

I hate to say but I just reduce the price of our best selling program, “The Progressive Sales Process”. I guess that’s why the subject of reducing prices is on my mind. The problem is that we experienced a great reduction in new traffic to our site. We once ranked high for sales training related search terms on the most popular search engine but a few weeks ago, they disappeared. We have people working on the problem and I’m confident we’ll soon figure it out. In the mean time, I found it necessary to cut the price because we needed to convert more visitors. Once we are back on that search engine, we’ll start charging the normal price for this program about the sales process. UPDATE: Problem Has Been Solved And We Are Back On Track

Reduce Prices To Increase Demand

Price effects demand. In this case, we lowered prices to create more demand and so far it’s working. However, we gave this action a lot of thought because there is a danger that must be considered.

What To Know Before You Reduce Your Prices

Because of the lower price, will there be a lower perceived added value of the training? People expect a $100 meal to be better than a $10 meal, right?  You’d expect a $1,000 sales training program to be much better than a $200 sales training program. Just think about how you buy wine. I’m sure if I sold that sales training DVD for $5, very few would buy it. How good can sales training be if it’s only worth $5? At that price, you have to wonder if the sales techniques are any good.

So, when you feel you need to cut your prices do so for the right reason and insure you consider the “perceived value” issue. You’ll make up the difference by increasing volume but only when the price is at a level that still reflects your product’s value.

Please know that sales success is not price dependent. If you use powerful sales skills, you can maintain prices and sell more in any economy. However, you can’t speak with someone when “selling”on the Internet. If I could, I’d double my prices because every sales training CD is worth it.

Well, that’s my thoughts for today on when you need to reduce prices.

Keep Selling!

Nick

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Tags: added value