A new year is upon us, and many CEOs are asking themselves "What do we have to do differently in 2013 to achieve higher and more consistent sales results?" It seems like a simple and straightforward question, but the answer can be tricky. Inadequate sales performance can usually be traced to the three critical issues of price, portfolio and people, the 3 Ps as I like to call them. And it's common for companies to have deficiencies in one or more of these areas.
1. Price. Let's face some facts: You have to have pricing that's in the range of your competitors'. Even if you have superior customer service or strong value-added services, you can't ask 30 percent more than your competitors do. Salespeople will always complain that their pricing is too high, but if you are constantly losing new opportunities, it would make sense to conduct some competitive benchmarking of your industry.
2. Portfolio. Client needs are constantly changing, and many firms are slow to adjust their product and service mix to keep pace. This is especially true in industries in which technology is changing rapidly. An excellent example of this is AT&T, which was the dominant provider of telecommunication hardware in this country. During the 1970s, AT&T invested heavily in its hardware product line with the expectation that the line would last 10-plus years. However, the Japanese and Chinese telecom manufacturers entered the U.S. market with products that were cheaper, easier to install and superior. In four short years, AT&T fell from being the dominant player in the industry.