article |
February 8, 2019
Ending Sales Team Resistance to Your Pricing Initiatives
By: Andrew Urteaga
A sales rep’s mind can be their worst enemy when it comes to pricing initiatives. You have probably heard the comments in the hall-way and board rooms. “We don’t have good products/solutions to command those types of prices”. “My customer told me they do not have budget”. “This sounds like a one size fits all approach”. My favorite, “We will lose this customer if we ask for another price increase”. Too many B2B companies today fail to activate pricing initiatives because they don’t focus on overcoming resistance from the sales team. As a CEO, you should care since many times this a critical growth lever.
Why You Should Care?
Think about the time money and resources spent on developing a pricing strategy. If done right, you probably conducted an exercise around segmentation in the markets where you can develop and exercise pricing power. Then you turned your attention to competitive positioning and how to influence buyer perception. You then focused on pricing structure, price lists, etc. With all the design and planning complete, I am still amazed how little effort is put on pricing execution.
This post focuses on how to overcome sales team resistance to pricing initiatives. The key stakeholder in pricing execution is the sales organization. Without them your initiatives are doomed to fail. On the flip side a focused, confident, and well-enabled sales organization can make 2-5 percent impact on revenue growth. Many times, this lift goes straight to the bottom line.
You can also download the SBI Pricing Execution Guidance Tool as an assessment to predict your organization’s pricing power.
What Does Great Look Like?
So how do world class organization activate pricing power? Below I have summarized the 5 key areas that will help you create focus.
In order to outpace the market and your competitors you need to exercise pricing power. This cannot happen without proper pricing execution. You cannot simply blame competitors and customers for poor pricing performance. Turn your focus to the sales organization and the performance conditions that build confidence and skill.
Start by using the SBI Pricing Execution Guidance Tool. This is not a quick fix, it’s a journey and takes continuous improvement.
What Should You Do Next?
SBI has also made it easy to assess your pricing strategy.
Additional Content
Schedule a working session at SBI’s Studio.
Located in Dallas, TX, our facility offers state-of-the-art meeting rooms, lounge, full-service bar, and a studio used to tape our TV shows. SBI provides the location and facilitators, all at a compelling price point.
As a guest of The Studio, you’ll get unlimited access to SBI’s CEO, Partners, and a handpicked team of experts.
Clients describe Andrew as an industry thought leader. He has deep experience as an executive, having served in multiple positions as a sales leader, with a track record of outstanding performance in F500 companies.
Prior to joining SBI, Andrew held the position of VP of Sales at Avis Budget Group where he was responsible for sales and marketing leadership. He also held a variety of positions with Cintas Corporation, a Fortune 500 multi-national company, including key quota carrying positions in the sales force from sales rep through to executive leadership.
Andrew’s work has included everything from lead generation, campaign planning and sales process to designing complete sales management coaching programs and new compensation plans.
Read full bio >There’s no doubt that the pandemic has permanently impacted daily life in every way. It’...
SBI TV episodes bring you Sales and Marketing insights from B2B industry thought leaders and growth experts, on topics like product, pricing, customer experience and success, and go to market. Catch up on new and previous episodes here.