A post from Linked in

This is an interesting take from Martin Schmalenbach, I found it on the Linked In social website and thought I would share it with you.In these tough economic times we are all hearing “the price is too high” much more frequently – customers are trying to manage falling
revenues and even faster falling profit levels by squeezing suppliers
for lower costs. So they tend to see the problem in terms of costs being too high. If
you are selling to other businesses, you could be dealing with a
purchasing officer, who tends to be measured on getting prices down…We have had some success in re-framing the problem the customer has –
from cost problem to revenue problem, and have shown some customers
how to improve revenue by re-framing THEIR value proposition to THEIR
customers… In some cases this has resulted in our customer accepting
prices stay as they are, and not cut… In a few cases they ended up
buying a MORE EXPENSIVE part from us that enabled them to achieve
lower costs elsewhere AND penetrate new markets/keep their own prices
constant instead of cut…We showed these customers that there was value in doing business with
us that is not inherent in WHAT we sell – much of what we sell is
available from plenty of other competitors…

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