The War Room
Discussion
Post

Costs and Pricing

I've sold for the same B2B manufacturing company for 3 years but in two different divisions. In the first division, we knew our product costs and established pricing ourselves based on margins. We had an acceptable minimum but could go higher. For anything lower, we needed approval from management.


In the second division (the one I'm in now), they don't tell us the costs and we sell based on market and industry pricing.


In both cases, I enjoy the fact that I have some control on pricing and can adapt to different situations.


Fellow sales savages, how does your company work in regards to costs and pricing ?



How are your sale prices decided ?
Attached poll
*Voting in this poll no longer yields commission.
2
SalesPharaoh
Politicker
+8
AM BDR
Well we have flexibility but the annoying thing is that there is a "pricing" team that has to approve my offer which is something weird because they are not involved the negotiation and suddenly can stop the whole deal from happening when you are agreed in the conversations with your prospect in the later stages. 
SalesGal
Politicker
+6
Account Manager / FSR
That's really weird to me ! I wonder how many more companies function like this. 
Simo
Politicker
+7
Director of Sales
That is definitely strange and I could see how that might blow up a deal. 

Does your company implement discount tiers for your sales team? I would get written consent for a threshold I needed before showing the client any discount. 

Ie
Rep - 10% threshold
Manager - 20% threshold
Director - 30% threshold
CRO - 40%+ threshold

This has helped my previous org's get some standardization. 
funcoupons
WR Officer
+11
up in Fiji, under paddy
I work in corporate insurance, so pricing is all decided by my company...sometimes you can sweet talk the analysts into providing a marginally more competitive rate, but generally what they say goes.
SalesGal
Politicker
+6
Account Manager / FSR
Is your pricing competitive in regards to your market at least ? 
funcoupons
WR Officer
+11
up in Fiji, under paddy
Kind of. We sell on a completely different model than our competitors, who are all in the lowball game and will undercut each other all day long. 

We're very rarely if ever the cheapest option and cannot play the lowball game due to our business model and are up front about that with prospects from the start. 

When I try and get prospects a lower rate it's usually because we're trying to work within their budget constraints or sweeten the deal, not beat another quote.
Show 4 more replies
ja
jackodiamonds
Opinionated
+4
Account Executive
Company provides pricing but we have a ton of flexibility so long as we stay above the "floor" pricing which is nice, but can also be confusing for prospects 
2
When presenting pricing...
Question
17
4
Pricing Anchor
Discussion
5
6
Pricing
Advice
10