Guest Post by Bob Rickert – CEO, PCS Strategies, Inc.
I often hear salespeople and sales leaders lament that they are being commoditized by customers who focus only on price and unbundling the value of their solutions. They don’t see this only from procurement but also from operational, functional and even senior-level economic buyers. I hear the frustration from salespeople who work for highly differentiated companies with significant value engineered into their products, services and delivery capabilities. They offer unique expertise and thought leadership in their respective industries, yet they get reduced to lowest price bake-offs that neutralize their competitive advantages.
This happens to them for three reasons. First, it is a cost management strategy for buyers. They know that one way to drive down their costs is to procure all services at the lowest price. It works! For every dollar of cost they can remove, that dollar drops directly to operating profit. Of course, it removes a dollar of operating profit for every supplier that participates.