Quite often, especially in this economy, salespeople and companies enter into a contract that cuts their margins so low that every time they work on that contract they get angry.
I had a client that complained that he made no profit on his biggest customer. Then why do it? How many of you have a customer that you wish you did not have? I ask that question in every sales course I teach and every hand goes up. That customer generates
the lowest profit, requires the most service, and does the most damage to your reputation.
The next time you are negotiating with a prospect and he says the other guy will do it cheaper, resist the temptation to drop your price.
Here is a tip to help you. If the prospect wanted the other competitor’s service he would have already bought it. What they really want is your product or service at the other guy’s price or they would not be trying to get you to match the other guy’s
price. Go back and review Ray’s Rule on “The Value Triangle” to help you justify your price.
Conversely, never negotiate a contract with a supplier that they will be angry to fulfill. Why, you may ask? The answer is simple. Do you want someone installing your insulation, serving your food, fixing your car, or teaching you how to sell to be angry with you while they are performing any of those duties?