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Why do managers get upset if you drop the price so much IF you get the deal to come in?

For instance, if you price high to begin with, but based on your conversation with the potential client, he is only willing to do a low price (that would be an acceptable deal anyways if you started around there), why is it unacceptable to drop the price that much? I feel as long as the price on the deal is acceptable it is OK. - by fljs83
You can never say that any deal is a good deal...if the profit is too low and it's unsustainable then you guys wont be in business long.

Check out one my my old posts with this link below, i think that "Higher Prices Rule"

http://www.salespractice.com/forums/t-3681.html - by Tony Dunne
Why do managers get upset if you drop the price so much IF you get the deal to come in?

For instance, if you price high to begin with, but based on your conversation with the potential client, he is only willing to do a low price (that would be an acceptable deal anyways if you started around there), why is it unacceptable to drop the price that much? I feel as long as the price on the deal is acceptable it is OK.
I'll answer your question as you have asked it. Managers get upset in those cases because they object to you managing the sale. It's a control issue having less to do with profit consciousness than with maintaining pecking order and their own job security. - by Gary A Boye
I'll answer your question as you have asked it. Managers get upset in those cases because they object to you managing the sale. It's a control issue having less to do with profit consciousness than with maintaining pecking order and their own job security.

I absolutely agree with this answer! - by MPrince
I'll answer your question as you have asked it. Managers get upset in those cases because they object to you managing the sale. It's a control issue having less to do with profit consciousness than with maintaining pecking order and their own job security.

I absolutely agree with this answer!

Excellent observation.

Many sales gurus throughout my sales career insisted on reducing the sales process into codified axiomatic structures that could be objectively assessed and implemented. Experienced sales people know that the industry is an abstract emotive dynamic, filled with egos all jostling for their brand of control.

When placed in conflict, power and ego recognition usually trumps financial considerations. - by John Voris
One of the reasons I used to get upset when one of my sales team sold product at a reduced price, was that pretty soon the reduced price would become the norm.

There were many instances where the 'it was alright last time' approach has devalued the sale.

It could be argued that it has not been 'sold' merely supplied. - by Tony Pizii
One of the reasons I used to get upset when one of my sales team sold product at a reduced price, was that pretty soon the reduced price would become the norm.

There were many instances where the 'it was alright last time' approach has devalued the sale.

It could be argued that it has not been 'sold' merely supplied.
Why, under your management, was it all right last time and not all right this time? - by Gary A Boye
Keep in mind that not all situations are the same. Selling a product and service at a reduced price to one client does not have the same conditions as another. A first time client that promises more jobs down the road, I cannot survive on promises down the road. Or a long time client that is suffering difficult times and has delivered many jobs, referrals in the past deserves financial considerations, a personal friend. Past experiences with the client will also be involved in a decision by me to reduce price. How much are we talking about dollar wise will enter the equation.


I am the manager of a company and what was stated above by Tony is 100% spot on, it becomes the normal procedure by a weaker sales person to lower the price. Most employees do not understand the cost of doing business. They see 100 dollars as a whole 100 dollars when in fact it is only 12-15% profit. The rest is used up with the cost of doing business. To justify what I am stating all we must do is look at the number of business that have closed their doors due to operating expenses outweighing the profits.


I am confused with the statement, acceptable amount? Who decided if that amount is acceptable, the client, you the sales person? Who decided it is price too high anyway? Are you willing to take a cut in pay to offset the amount agreed upon? How did we come up with an acceptable amount? Am I the manager included in the pay? How about the unproductive staff that makes the sale happen after it has been sold, is their pay and benefits included in the reduced price? Is growth of the company in that reduced price? Can my company survive with each of my sales staff continually reducing price? What happens when the next sales person reaches out to this client when you are no longer employed? What happens when I follow you and follow the process with this client? What does it state about the company’s pricing process? What is the client giving up to get the reduced price to offset the loss of the profit margin? Why can’t the client meet the price? There are more questions concerning this question.


I am a different type manager I am on the front lines with my sales staff. I am out selling every day. I wish more managers would do this and understand what each sales person is up against on a daily basis. I am not there to manage anyone’s process however I am there to make sure that we as a company make the necessary profit to run the business and keep the doors open for many years. I am not interested in controlling any sales person I am there to; guide and give help where needed to enable the sales staff to do the best that each person can. I am there to increase their ability to make a great living and fulfill their goals. I want you to be better than me and I am willing to do anything that is necessary to help get you there.

I realize this is not about me however I can only answer this from my standpoint of being a manager of a company.
 
 
- by rich34232
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