We’re a society of givers.
Not to fly in the face of customer-centric principles, but I believe that in a business-to-business environment, we devalue our offerings and potential future revenue by giving away valuable products and services at little or no charge. In effect, we've trained our customers to negotiate with us, and they're on top. It often occurs in the form of a concession in order to close business within a calendar deadline.
Another ironic truth? Some salespeople offer up product freebies when the buyer hasn't even asked. The reality is that it’s not necessary. You wouldn’t be this far along the buy/sell cycle if they didn’t like your offering the best.
Another ironic truth? Some salespeople offer up product freebies when the buyer hasn't even asked. The reality is that it’s not necessary. You wouldn’t be this far along the buy/sell cycle if they didn’t like your offering the best.
Bad things happen with giving, and here’s why: The story of your giving becomes public knowledge. You've trained your customers to use your published prices as a start-point in negotiating. Your pricing reputation precedes you, and your quoted street or list pricing is now suspect.
In our rush to close we offer unnecessary enticements and concessions. Now consider the prospect or customer that does pays book value for your offering - they clearly understand the value and usage of your product or service because a sales team enabled them, by providing a clear understanding of its’ projected impact on their business. Here's a guideline: When appropriate, apply Quid Pro Quo tactics, but don't just give it away!
In our rush to close we offer unnecessary enticements and concessions. Now consider the prospect or customer that does pays book value for your offering - they clearly understand the value and usage of your product or service because a sales team enabled them, by providing a clear understanding of its’ projected impact on their business. Here's a guideline: When appropriate, apply Quid Pro Quo tactics, but don't just give it away!
Yet another perspective; it’s rare that either buyer or seller will take the time to conduct a business value analysis on a free product. So now you have a new “user” who is unaware of your product's usage capabilities, and lacks awareness of the potential value it brings to their table. So you are at risk of carrying a negative, or at best, an indifferent customer. This is a leadership issue. It’s your call.
Giving away product or services is like giving away your intellectual property.
