SPAIN Out Let, a country of sales.
Lately, many companies require my services as a trainer with the intention of helping in solving the problem that they have with the sales teams.
Regardless of the size of the company and the sector it belongs to, the problem that they bring to me is always the same:
Being able to not let the team fall into defeat and apathy provoked by the loss of customers every day that, being satisfied with their product and their service, have just hired another supplier that offer a lower price.
It’s difficult to hear a professional that has been for thirty years taking care of customers and defending their company, questioning themselves whether their job was worth it, if it would be better to change the sector or inclusively abandon the activity their passionate about.
It’s comprehensible that the current crisis situation provokes a greater adjustment of the prices but the observation and the analysis of the Spanish market have suggested the birth of new phenomena that I call “Spain Out Let”.
This concept is not a reference to a previous one that appeared in the United States and imported to Spain for approximately ten years and that consists on offering products, mainly the textile sector, deriving from manufacturing surpluses or from precious seasons of first brands with discounts that go from the 30%.
What I’m referring to is the general sensation that our companies, our products and inclusively our work are worthless or worth very little and that the only argument that we have to compete is lowering the prices.
During these last months, I have seen all kinds of companies of the most various sectors that also began following this dynamic, which rectifies that the concept lost its essence and adopted a new meaning.
Furniture stores, optics, windows factories or training companies are ordered under the argument of the lower price as their only salvation.
They seem to forget the saying that competing on price is suicide.
Fundamentally, as there has always been someone that offers a cheaper product than theirs and if, the only argument of purchasing of their customer is the price, at the moment that someone offers them cheaper, the customer will take it.
I’m aware that currently it is more complicated to justify our prices and that it means an additional effort for the companies to defend their position.
Meanwhile, lowering the price does not guarantee the customer’s retention. Ideas such as “it can’t be the same product you offered before”, “have they lowered their quality too?” or “could it be that they were deceiving me before?” can jump in the mind of the consumers leading to a rejection of our product due to a decrease on the price.
It’s not that we as customers want to buy the cheapest product, what we want is to have the perception that we are buying the product in the best conditions.
How many people would dream of having a Ferrari if it cost as much as Seat Ibiza?
Although we tend to rationalize our actions, I’m convinced that in sales, the emotional component has great importance and at this moment of uncertainty the people that we represent organizations we have to provide our customers the emotion demanded the most: trust.
This trust is achieved by being always close to our customers, fulfilling their expectations and exceeding them if possible but, above all, being the first to believe in what we do.