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Why you should sell with high margins

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Why you should sell with high margins

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Sales professionals tend to give away discounts under the false pretense of “this is a strategic deal” or “we get this deal and the customer will standardize on our products/services”. Both statements are seldom true!
I always press on the big picture and present it to sales professionals and managers, so they believe in the importance of a high margin and spend their energy finding ways to create a unique value proposition that results in high margins

Sales professionals tend to give away discounts under the false pretense of “this is a strategic deal” or “we get this deal and the customer will standardize on our products/services”. Both statements are seldom true!
I always press on the big picture and present it to sales professionals and managers, so they believe in the importance of a high margin and spend their energy finding ways to create a unique value proposition that results in high margins

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Why you should sell with high margins

  1. 1. The reason why you should sell with high margins! Sales professionals tend to give away discounts under the false pretense of “this is a strategic deal” or “we get this deal and the customer will standardize on our products/services”. Both statements are seldom true! I always press on the big picture and present it to sales professionals and managers, so they believe in the importance of a high margin and spend their energy finding ways to create a unique value proposition that results in high margins. This chart shows the total picture from the selling price to net income, with relevant expenses that will eat up into the gross profit (GP) until we are left with the actual money that goes into the pocket of business owners You will be surprised how much is the net profit by business segments. In the following table I included some industry sectors with their typical GP, COGS, SG&A, and net profit. I hope you find it educational and hope it will motivate you to work on your overall strategy (corporate, product, marketing, sales, and talent) to come up with unique value proposition to boost your net profits.

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