|
No one needs to tell you that pricing is a complicated process.
Often, sales people must consult multiple books and spreadsheets
to price products. Because product pricing is dependent on
so many factors, it's easy for salespeople to make mistakes.
For example, many companies start with a base price for the
product, which often depends on a standard product configuration.
The salesperson then adds custom specifications, services
pricing, and predetermined customer discounts. All of these
factors are applied through an equation that a salesperson
must memorize or run through a spreadsheet. If the salesperson
has an outdated spreadsheet or price book or does not calculate
the price correctly, the resulting errors can cost the company
a lot of money. Customers have been known to call several
different salespeople in the same company, hoping that someone
will make an error and offer a lower price.
The sales process becomes even more complicated when a company
sells through distribution partners. If distribution partners
wish to sell your product, they must use the same spreadsheets
or call a sales person. The whole process takes time and adds
one more layer to a process that is already fraught with errors.
The
bottom line? Quoting accurate prices for products and services
is essential if a company wants to stay competitive.
| 
