B2B Pricing and Sales Effectiveness

Understanding pricing in direct sales

Selling is hard and it's important to get the right price for every deal. But when your customers are diverse and your sales executives all have their own approach, what is the right price? If you want to control pricing you need to understand your customer and your sales department, and closely follow up on your results. With the right experience and expertise, this is one of the fastest ways to grow your business.

In B2B, pricing is not about fancy optimisations. It's about understanding your customers, how they perceive value, and how well your sales teams execute.

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Death by a thousand cuts: profit lost by discounting the long tail

It’s easy to let pricing discipline slip for small deals as you focus on the big deals. But, just as for e-commerce, the long tail makes up a large share of your contribution margin. Don’t discount small deals the same way as big deals!

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Build sales’ confidence: Tell them ‘no’!

Nothing is more deadly to the belief in the value of your product than management giving in to every request for a discount. Companies should keep track of their discounting behaviour to protect the perceived value of their products.

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3 Types of deals you should price differently

Sales executives are often measured on revenue attainment regardless of the financial health of the deals sold. This post offers a framework to look at the health of the deals that your sales team brings to the table.