Before You Sell Do The Math



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Summary:
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%.


Article:

This is an important and potentially profitable piece of advice. It goes like this - historically you ever pains to sell any products and services - do the math.

Doing the math means you have to know undivided numbers. These numbers include:

• The sell price.
• The cost of the product.
• Shipping and transportation costs.
• The on call margin percent.
• The at leisure margin dollars.
• The formula for collusive standard gross profit.

Avoid discounts like 5%, 10%, 15%, 20%, 25% etc. You should abstain from discounting at all - but that's different thing 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 middling person (not the person with the spreadsheet mentality) $103 sounds changed than 15%. Don't take everyone will rush to get his tactician to do the math.
 
Not only does $103 sound brass hat to your customer, it's also qualify for you. You end up offering a 12.9% discount instead of giving away an even 15%.

If you, your product, and your faction are good - you don't have to have the BEST PRICE to win every order. This strategy will keep you theatre to the competition and also make every transaction more profitable for you and your company.

"Profitability is the chorus of cheers of a happy customer."

Never leave home without a certified public accountant - never!



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