Stop Helping Clients Chase the Bottom

first_imgA business owner sells a product. A new salesperson shows up and teaches the business owner that by changing some of the component parts of his product that he can create that product at a lower cost. This makes his product and business more profitable.Later, another salesperson shows up and teaches the business owner that buy choosing another cheaper component part (in addition to the one he’s already installed in his product) that he can manufacture his product at an even lower price and capture even more profit.This whole “cheaper” thing is really starting to pay off. The business owner follows this path. He continues to try to find lower-priced components with which to manufacture his product. But over time, his product has changed. The product is not as high quality as it was when he originally created it. The perception of value has changed. Now it’s cheaper.Slowly at first, then faster, the business owner loses market share to competitors with a product that costs more but is of significantly higher quality. The competitor’s product is perceived as being more valuable–and it’s not the lowest price.As fewer and fewer people are willing to buy the business owners product, he begins to lower his price in an attempt to compete with product’s that cost more. He tries desperately to widen the perception of value. Now with the perception of value destroyed, he competes on price. In doing so, he is less and less profitable.You are hurting your customer by helping them find a lower price if it hurts their long-term business prospects. Your job as a sales person (and good business partner) is to help your clients create more value. If you can help them produce greater value at the same or lower price, that’s a good thing. It’s helping them obtain a lower price in a way that doesn’t hamper their ability to deliver value to their customers. But if what you sell them reduces the value that they create for their clients, then you are harming them by winning the business on price and allowing your client to underinvest in the real outcome they need.By helping your clients chase the bottom on price you may be helping them destroy the value they create.QuestionWhat part do you play in your client’s value chain?How do you help your clients deliver value to their customers?When is it wrong to help your client obtain a lower price?When is cheaper better? Is the cheapest product ever the best product in its category? Essential Reading! Get my 3rd book: Eat Their Lunch “The first ever playbook for B2B salespeople on how to win clients and customers who are already being serviced by your competition.” Buy Nowlast_img read more

Parties’ tall claims for rejuvenation of lakes

first_imgThough both the major political parties have been making tall claims for rejuvenation of water bodies in the “City of Lakes”, the voters here are disillusioned with their “restricted vision” which they say is unable to grasp the significance of the ecosystem that ensures protection of catchment areas. The lakes here are facing a major issue of pollution and reduction of submergence area.After the successful removal of water hyacinth about six years ago, the water bodies such as Pichola Lake, Swaroop Sagar and Udai Sagar are facing contamination caused by the discharge of pollutants from the phosphorite mines and chemical factories and the release of sewage and domestic waste from settlements and hotels.The residents of the city expect the two stalwarts pitted against each other – Home Minister Gulab Chand Kataria (BJP) and former Union Minister Girija Vyas (Congress) – to resolve the lake pollution issue for saving the identity of Udaipur, on which the survival of tourism business depends.Udaipur district BJP president Dinesh Bhatt told The Hindu that the State government was making “serious efforts” for conservation of lakes. Mr. Kataria, contesting for the fourth consecutive term, has highlighted his achievements on the law and order front as the Home Minister and the city’s infrastructure development as the MLA during his election campaign. He has credited the jump in Udaipur’s rank as a tourist destination to the projects initiated by the BJP government.On the other hand, District Congress Committee general secretary Saddam Hussain said Ms. Vyas’ return to the constituency after serving in the Centre as the National Commission for Women’s chairperson was a challenge before Mr. Kataria which he would find difficult to face. On the lake front, the Jheel Sanrakshan Samiti and the Jheel Hitaishi Nagrik Manch have taken up the initiatives for educating the people and cleaning the water bodies. Manch’s founder Haji Sardar Mohammed said the community efforts for taking out pollutants and aquatic weeds through boats had led to an improvement in the situation. The activists working for conservation of lakes have demanded that the next government centralise the works currently undertaken by as many as five different agencies.last_img read more