“Willingness to pay research give companies pricing power. And with pricing power, you can defend higher prices and increase sales volume and increase prices at the same time, providing unsurpassed profits and business result to the company.” – Per Sjofors in today’s Tip 1473
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Transcript
Scott Ingram: You’re listening to the Daily Sales Tips podcast and I’m your host, Scott Ingram. Today’s tip comes from Per Sjofors. As a serial entrepreneur, running companies in Europe and the US, he did pricing experiments. Some of these worked spectacularly well, and some did not work at all. As a result, Per founded his company out of his frustration with what business schools teach about pricing. Here he is:
Per Sjofors: If you are in sales, you are probably well aware of the term “Buyer-Liar”. And why do buyers lie? Well, it’s very easy. They simply want a better deal. And when salespeople are listening to all these lies, I mean, actually, sometimes it’s not lies, sometimes it’s just buyers who don’t tell the whole story with all the information that they think the seller will benefit from. But what happened is that salespeople are eventually being ground down. They start believing all the stories they hear. They start believing hearing every day that your competitor is better and cheaper, and more features and functions, and lower price. Negotiation tactics, nothing else. But there is a remedy here actually. And the remedy is willingness to pay research. This is digital research into a marketplace. And from that, it is possible to understand what customers are really willing to pay. Not what they tell the salespeople, but there’s more. It also gives you information on what they’re willing to pay for, right? What will drive them to increase their willingness to pay? So when used properly, willingness to pay research give companies pricing power. And with pricing power, you can defend higher prices and increase sales volume and increase prices at the same time, providing unsurpassed profits and business result to the company.
Scott Ingram: For links to connect with Per, and to his book “The Price Whisperer: A Holistic Approach to Pricing Power”, just click over to DailySales.Tips/1473. Once you’ve done that. Be sure to come back tomorrow for another great sales tip. Thanks for listening!