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Before You Sell Do The Math
This is an important and potentially profitable piece of advice. It goes like this - before you ever attempt to sell any products and services - do the math.
Doing the math means you have to know certain numbers. These numbers include:
? The sell price.
? The cost of the product.
? Shipping and transportation costs.
? The available margin percent.
? The available margin dollars.
? The formula for calculating standard gross profit.
Avoid discounts like 5%, 10%, 15%, 20%, 25% etc. You should avoid discounting at all - but that's another topic. If you must put a price concession on the table - do it with dollars. For example, if you're selling a product that has a list price of $795:
Most salespeople would say - "If you order today I'll give you a 15% discount."
Another option is to say - "If you order today you'll save $103."
To the average person (not the person with the spreadsheet mentality) $103 sounds better than 15%. Don't assume everyone will rush to get his calculator to do the math.
Not only does $103 sound better to your customer, it's also better for you. You end up offering a 12.9% discount instead of giving away an even 15%.
If you, your product, and your company are good - you don't have to have the BEST PRICE to win every order. This strategy will keep you close to the competition and also make every transaction more profitable for you and your company.
"Profitability is the applause of a happy customer."
Never leave home without a calculator - never! Jim Meisenheimer is the creator of No-Brainer Sales Training. His sales techniques and selling skills focus on practical ideas that get immediate results. You can discover all his secrets by contacting him at (800) 266-1268 or by visiting his website: http://www.meisenheimer.com
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