"We need to give them a win"


"We just raise up the price 30% and then go and give them (the customer) a 30% off. That way they'll go to their boss saying they got a deal. And they'll buy"

Their closing rate: 40%

Reality?

A product in the market that's underpriced —and living in a discount culture.

Money left on the table? A couple million euros per year.

Here's the thing:

Inflating your prices to give a discount means a couple of things:

  • You're not talking to the ones who call the shots.
  • You're getting ready to take more off the price.
  • An experienced procurement person will go hard and see how much low you can go.
  • You'll be seen as easily exchangeable.
  • When they figure out your math, they'll push for way more than your 30% off.

Giving them a win doesn't mean to cut your prices down, but how it can be profitable for them AND for you.

For both parties to be happy with the deal, and for you to find ways to better-serve them.

And that's not math.

Rod Aparicio

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