The focus of this module is on growing your volume profitably. Growing volume in a business is important because:
- investors and owners expect it
- gradually increasing expenses over time demands volume growth
To maximize volume most businesses adopt a competitive pricing strategy. Training in this area often focuses on how much you need to lower price to increase volume. Sales representatives often make price concessions to attract more volume from customers and if they don’t, customers usually ask for, or demand a lower price at certain volume levels. . So training your sales team about how to deal with competitive pricing situations is critical to the financial health of your business.
For us, competitive pricing strategy training looks a little different. In our work with clients we focus on profitable growth and don’t assume that increased volume automatically translates into increased profit. In fact in many cases giving a price concession to attract volume will reduce profits, sometimes substantially. It’s not really all that complicated but the outcomes usually surprise even seasoned business owners and managers.
With our competitive pricing strategy training we help clients understand this relationship by understanding the dynamics between:
- the expected volume increase
- the price discount offered
- the margin level for the product or service
- the impact on expenses
So if you’re adopting a competitive pricing strategy, training can help clarify the elements you need to consider. With the right type of training you might also discover that from a profit perspective you might be better off by raising your prices and giving up some volume in the process. Either way we’ll help clarify the path that leads to increased profit.
The one percent difference DVD program consists of the following four modules:
The 1% Difference: Small Change-Big Impact