There are very few businesses where price does not become an issue. In every industry there is a lot of competition, ultimately that is going to cause price pressures. When you review your annual P&L, increasing profits by a few percentage points is going to have a positive impact on your bottom line. Plus the more deals you close and customers you bring on all add to your overall business growth. That’s what we do for the clients GCG consults with.
In product sales where there is a lack of differentiation between products, it is easy to go to your competitor’s websites, find their pricing, scratch your heads as you see they are selling their comparable offerings for less than you are, driving margins down and our customers are heading to their store to purchase from them.
In enterprise deals, you do a lot of heavy expensive lifting to make the business use case for your products and get a customer to the finish line. You work hard to get yourselves short-listed for purchase. Then you get that dreaded call that price has become an issue and their CFO tells you that your competitors are willing to undercut their prices just to get the deal, will you match them?
In services deals, again, being undercut by competitors who claim to offer as good as if not better services at a cheaper price are very appealing to buyers and when this happens it is hard to refactor your deals and refocus your customer prospects.
