Better Process Podcast

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Ken Rayment

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This show discusses manufacturing news. The topics range from US manufacturing, China competition, RFID, lean manufacturing, and manufacturing technology.

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Industry Report Mark Burton Pricing with Confidence

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letterheadlogo.JPGWhen customers ask for discounts, salespeople should turn the discussion to value. Customers expect this and typically attempt an end run on the salesperson. The customer telephones a senior manager at the salesperson’s organization to rattle his or her cage in an attempt to get the manager to buy into the White Horse Syndrome. Sometimes the senior manager saves the customer the trouble by initiating the call. In either case, salespeople learn that when they try to hold the line on price, someone else in the organization will criticize them for messing up the sales opportunity. Salespeople quickly learn that they would be foolish to try to get additional profit for the company with higher prices. After all, aren’t they paid to close deals, regardless of the costs for the company? The real challenge is getting salespeople and managers to have more confidence in their pricing. This requires salespeople and managers alike to resist undermining prices with short-term, panic-oriented tactics. The bad news is that most companies do exactly that. The good news is that it takes just a few simple rules to reverse the process, build discipline into the pricing process, and stop leaving money on the table. In fact the following 10 rules will lead to your pricing with confidence.

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Holden Advisors

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