The 3 Ps: Price, portfolio and people

January 03, 2013 at 11:00 PM
Share & Print

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.

3. People. It's no surprise that good sales teams rely on well-trained and highly motivated people in sales, support and marketing. If one member of this team does not function properly, the performance of the entire team suffers. One common problem area involves sales not pursuing in a timely manner the qualified leads supplied by marketing. Conversely, if the sales team is responsible for generating its own leads, valuable selling time is lost trying to find qualified leads.

As we work into the new year, set aside some time to evaluate your 3 Ps. Your success in 2013 depends on it.

Sign up for The Lead and get a new tip in your inbox every day! More tips:

Dan Hudson is the co-founder and president of 3forward and has a B2B sales and sales leadership background of more than 30 years. He can be reached at [email protected].

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Related Stories

Resource Center