I am worried about our margins and we seem to be making less and less each month from our sales. We have a good product and have two salespeople on the road but they come under a lot pf pressure from customers on price. What is the best route for us to take?

Topic: Profit Margins

Answer: First up, think about what your product or service does – why should customers buy from you and why do they buy from you? What advantages or additional benefits do you provide your customers with (not price!)? Is your product/ service of superior quality or you deliver more efficiently or provide a superior after sales service? Whatever you advantage these should be used on the front line in front of your customers when price is challenged? Have you worked with your salespeople and seen first hand how they handle this negotiation – from where we sit that would be a good first move and you may want to come back to us with your reflections after doing this when we can provide further more specific advice.