Tag Archive | Pricing & Quoting
If you are reading this blog, it’s probably because you are working to select the right CPQ for your company. Well done, you found the right blog to answer your questions. I’ll try to list what, in my opinion, should be evaluated when choosing your CPQ app. I hope it is valuable.
Profitability… Margins… these words surely resonate in the mind of every business manager throughout the year. According to market sector, company size, business model, and many other parameters, you have different ways to generate profit margins. However, there are two areas of improvement you should strongly consider to increase profit margins: the automation of your sales force and the optimization of your products offering and pricing policy. That being said, here are a few tips to leverage better profitability.
In order to reach their quota, sales reps are often inclined to pursue low margin/high volume deals. In the short-term this approach may improve close rates, but this approach can have a detrimental impact on the brand image and the company’s profitability. The delicate balance for many organizations today is aggressively driving top-line growth while still managing bottom-line margin contribution.
Most of sales reps usually dread the negotiation stage, and they consequently make several mistakes since any small change is stressful. Worse, some of them will barter their discomfort against discounts that are not needed nor solicited. In order to avoid this situation, wouldn’t it be better if your sales reps can face last minute requests from customers wishing to edit a quote?
Any sales manager will tell you that sales reps are rare and expensive resources. Unlike many professions whose work is limited to predictable and repetitive tasks, the sales rep has to have a wide variety of knowledge ranging from the capability to generate interest when prospecting to the ability to negotiate what is best for his employer.
As product and service options have grown increasingly complex – sometimes with literally billions of variations available for a given offering – many companies are finding traditional price quote and bundling capabilities ill equipped in the face of today’s breakneck market speeds.
However, top-performing organizations are increasing win rates by adopting new processes and tools that enable creation of optimal quotes and proposals to match unique customer needs, shrink the sales cycle and outpace competitors.