Archive for May, 2009

Selling On Price

Wednesday, May 6th, 2009

There has been a lot of talk in the industry about selling on price. Sometimes it really annoys me when vendors tell me not to sell on price. Likewise, it can infuriate me when I read an article written by some “suit” or “ccs” telling me how selling on price is always a bad idea. Usually it is written by people from companies who have a higher price point and still are trying to sell their product at a higher cost.

When you are selling into an account for the first time price usually is what gets you in the door. You don’t always have the luxury of sitting down with a decision maker and going over options. You are just trying to get in the door anyway possible and a better price usually opens doors. As a subagent, I have access to many different companies and different pricing. Actually, the reason I started my own company is because I was tired of only having one product/company to sell. If you work for one company you have their product and their price. Sometimes you try to put a square peg in a round hole so to speak.

As an agent you try to get in the door with a first-time customer any way possible. Once you prove yourself, you can sell differently in the future. Vendors do not always agree with this and scold the agent for selling on price. I really don’t think this is always fair to the agent and can dishearten the agent toward a particular vendor.

Everyone doesn’t need a Lexus. Sometimes a Chevy will work just as well for a particular application.

Customers vs. Friends, Vendors vs. Commissions

Wednesday, May 6th, 2009

Lately, I have been having some issues with vendors who have become friends, and I thought I would throw a topic out there to see what the PHONE+ world thinks and how they deal with similar situations.

At any Channel Partners Conference & Expo, you always run into all of your vendors and channel managers in one place. For me it is usually in a bar, and that can lead to a little too much truth telling, if you know what I mean.

They all say things like, “Hey who got the deal with so and so?” Or “How come we didn’t get such and such deal?” The answer is always different and I really don’t like to hurt their feelings. That being said, sometimes people’s feelings get hurt when one vendor gets a deal and another does not.

My first thought is always with my customer. I want to get them the best price and the best service. When that situation comes up, it is easy to make the decision. But, what do you do when you have the exact same price from two vendors and you believe that both vendors have equal service? I try to lay out the options for the customer and tell them this and that about each company. Maybe they have a history with one or the other. Maybe they ask me my opinion.

Recently, I ran into this issue and the customer asked me which one they should buy. This is a question I really don’t like to answer. However, I have to give an answer. In this particular situation, I told them to use company A over company B. Do you know why? Company A paid me more money. The residual was about three points higher. Did I do the right thing? I think so, because I believe that both vendors are equal.

However, vendor B has become a friend over the years and became somewhat upset with me when I told him the truth. He did not believe that both were equal (of course), and it caused a strain in our relationship. We have since worked it out, but I am curious: how would some of you other subagents handle a similar situation?