In our survey, 100% of participants (54) indicated they experience some degree of pressure in most sales encounters.
Briefly, the survey responses indicated the pressure to cut price is:
Extreme – 4% (2)Price pressure ranged from mild to extreme, but it never completely disappeared from the sales process. Specifically, more than half (52%) viewed price pressure as significant or greater. Nearly 8 out of 10 (78%) declared the pressure was moderate to extreme, whereas only 22% viewed it as mild.
Significant – 48% (26)
Moderate – 26% (14)
Mild – 22% (12)
The severe recession and sluggish recovery magnify this strain. We’re more emotional, less objective and more reactive. Closing a crucial sale or acquiring critical parts at ruthless prices may determine whether or not a business stays afloat.
Early in the recession, price pressures were extreme, according to one vice president. Companies had the time and staff to evaluate every bid, and evaluate they did. It was the worst period of price pressure he’d seen in twenty-five years.
If the trend continues, one owner fears it will force his business into a low-bid arena, eradicating decades of quality results delivered at a fair but profitable price. He dreads having to choose between shutting down or becoming just another low-cost provider.
So, is price pressure fact or fiction?
Not one survey participant declared price pressure was non-existent, so everyone feels it at some level. Price pressure takes many forms in the current business climate, and both internal and external pressures are likely to be a force for some time to come.
Our white paper, Price Pressure | Is it Hurting Your Bottom Line?, deals with these issues in more depth and offers ways to counter pressures to protect your bottom line.
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Price Pressure | Death by a Thousand Cuts