Smartwyre’s Post

Is your pricing killing your sales? Pricing isn't just how high or low something is. It's understanding the buyer journey required to make your pricing work. I had a great conversation last week with a founder on this. Their pricing model was pretty bespoke to each prospect, but their product was designed to be simple-to-implement and use. Simple product, pretty complex pricing. I asked if they knew who their buyer, decision-maker and approvers were. You see, you could be speaking to someone who has to create a business case for their manager, that might need to bring it to a weekly meeting and then seek approval from finance. Let alone legals. Which could take months.. Or. You realise that your prospect can approve their own purchases under a certain amount that could allow you to start tomorrow. There certainly isn't a 'one-size-fits-all', but your pricing isn't two-dimensional. Find ways that you can use it to improve your buyer experience and reduce friction. Make sure you have some good terms in place though to be able to increase or adjust based on their usage!

FlexiBake takes the guesswork out of sales preparation. Armed with accurate forecasts, businesses can generate sales orders in advance. https://lnkd.in/gWGRGxm4

Struggling to communicate price increases without alienating customers? We break down the strategies customer-facing teams can use to defend price increases with confidence. Learn more here -> https://okt.to/2eTCvN #sales #pricingmanagement #pricingstrategy

💰Is your pricing strategy strong enough? Discover weaknesses with our insights on 10 sales signals that might be limiting your success. Enhance your strategy today! Learn more at https://okt.to/cRjQW3.

Pricing complexity is the silent sales cycle killer... Think about it… When potential clients struggle to understand your pricing structures… They're more likely to hesitate or look elsewhere… The key is to balance the variety of options… Without overwhelming them… Because too many choices can lead to decision paralysis. Simplified pricing does more than just make understanding costs easier; It: ✅ Accelerates decision-making, ✅ Reduces negotiation time, and ✅ Builds trust through transparency. The goal is to align your pricing model with the perceived value to the buyer… Ensuring it's accessible and straightforward. This doesn't mean eliminating customisation or flexibility… But presenting them in an easily digestible manner. Simplifying pricing isn't about reducing options but about streamlining the decision process for clients. And that will help your sales win-rate… Thoughts? Share in the comments ⬇️ ⬇️ ⬇️ #Pricing #Revenue #BusinessGrowth #B2B #ProfessionalServices

Hey Sales Team, Did you know? 1 x 1.10 = 1.10 which 0.10/1.10 equals 9.09090% margin 1 / 0.90 = 1.11111 which 0.11111/1.11111 equals 9.99999% margin. Numbers are powerful tools in the sales game, and understanding margins and markups is key to maximizing profitability. Let's revisit these concepts and ensure you're wielding them like a champion! The Margin vs. Markup Matchup: These terms often get thrown around, but they represent different sides of the pricing coin. Here's a breakdown: Margin: This reflects the percentage of revenue remaining after you subtract the cost of goods sold (COGS) from the selling price. It essentially tells you how much profit you make on each sale. Markup: This is a percentage of the cost price that you add to get the selling price. It focuses on how much you're increasing the price above your costs. Why They Matter: Accurate Pricing: Knowing both margins and markups helps you set competitive prices that ensure profitability. Profit Tracking: Margins give you a clear picture of your overall profitability, allowing you to identify areas for improvement. Negotiation Power: Understanding your margins empowers you to negotiate effectively with customers and avoid undercutting your bottom line. The Money-Saving Mindset: Let's address the elephant in the room: undercharging. Here's how misunderstanding margins and markups can cost you: Overreporting Margins: This might sound good, but it could be based on inflated numbers that don't consider all expenses. You might think you're making more profit than you actually are. Undercharging Markups: If you don't factor in a healthy markup, you might be leaving money on the table by selling products or services too cheaply. Sharpening Your Skills: Master the Formulas: Brush up on how to calculate both margins and markups. Know Your Costs: Accurately factor in all COGS to ensure your calculations are on point. Target Margins: Discuss with your sales manager what your target margins are and how to achieve them through strategic pricing. By wielding your margin and markup knowledge effectively, you can become a profit powerhouse for the company. Remember, informed decisions lead to maximized sales success!

#Pricing is an art form, not an exact science. It requires a careful balancing act of maximizing #profit potential, win rate, and customer satisfaction. And in today's uncertain economic climate, it's more important than ever to get sales buy-in on new pricing strategies. A #PricingStrategy is only as effective as its execution, and many industrial companies are reluctant to address pricing for fear that their sales force will resist new guidelines. Backed by decades of experience with #PrivateEquity and their #Industrial companies, here are the top strategies for achieving and maintaining sales buy-in on new pricing 👇

It's well known that the way you goal and compensate your team is the behavior you should expect. The challenge lies in building a usage-based sales compensation plan that aligns your team with your customer objectives, which can be difficult to navigate. Joe Morrissey and Mark Regan outlined 3 key considerations: 1. Determine where your sales team makes your customers more successful  2. Prioritize the most impactful sales activities 3. Choose the right compensation levers From there, you can delve into the specifics of other considerations, such as what retires quota, length of attachment to usage, handling multi-year commitments, and more. If you're grappling with these issues in a usage-based pricing model, feel free to reach out.

The truth about sales teams. Here's why everyone seems to have a bone to pick with sales. Marketing hates us because we ignore leads that seem unattainable. SDRs are frustrated because we don't turn impossible deals into sales. CSMs wish we would provide more information after enduring long closing processes. Customer service is annoyed when customers are confused by promises we made. Finance is upset with us for not chasing payments in our "spare" time. Even executives are dissatisfied because our targets are sky-high, yet we achieve only half. It's a tough spot, but there's a way forward. Want to learn how to navigate these challenges? Comment below for strategies. Check out my scripts, templates, and more in my bio. #officialsalestips

Prospect: “I am afraid you cannot meet the decision maker in the bid, the CFO. She does not have time. We will forward your offer to her and let you know the outcome.” (Have you already fallen for this trap before?) Let me give you the rule of thumb (from my own experience of 20 years of successful sales track record). If you have received a request for quotation but you are restricted from meeting and discussing with the stakeholders (decision makers, people who will be using your service etc), drop it. If you are stuck with procurement, don’t even consider answering it. It happened to me that I used to receive a bid on yearly basis, however there was no one else you could talk to except the procurement team. They systematically refused access to anyone else. Don’t waste your precious time on a deal which has 0 chances to be signed. I am going to tell you why: because either the prospect is doing a market benchmarking, but is not going to buy or the bid is intended for someone else to win and that someone is not you. You are just a name to fill a list. First thing you do after you have received a request for quotation, ask for a meeting. If you are turned down, don’t bother to get involved, your prospect will never work with someone they don’t know or have never seen in their life (please don’t say... " but the prospect sees my company’s presentation", it’s silly).  Insight from: https://lnkd.in/dtWi6vk9). IF YOU ARE FORBIDDEN ACCESS TO RELEVANT STAKHOLDERS THAN YOU ARE NOT TAKEN SERIOUSLY