You probably know that when we're negotiating, we do gifts and gets. We don't give anything unless we get something in return.
Purchasing people are always asking us for discounts and sometimes we have to give in. We give a discount to a client or a customer.
What should we get in return? Well, we should be thinking first about the things that are hard costs for us to serve our clients.
For example, maybe there's a shipping cost. Maybe it's a warranty cost. But there are things that are truly that cost us money and if we can get those as clawbacks, as our gets when we give something, then we're actually giving up a lower margin.
Many people call this pocket price. So, pocket price is, what's the price after I've looked at what are my costs to serve that individual customer.
We hope you enjoyed this memecast. This impactful insight came from the book, Selling Value, which I wrote to help salespeople win more deals at higher prices. If you have any questions or feedback, please email me mark@impactpricing.com.
Now, go make an impact.
Connect with Mark Stiving:
- Email: mark@impactpricing.com
- LinkedIn: https://www.linkedin.com/in/stiving/