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Cannibalising Your Own Customer Base

In traditional environments where commission schemes are based on ­revenues, salespeople have only goal: “Selling at all costs”. When salespeople are “desperate”, they find a number of unprofessional ways to close the sale.

  1. CREDIT FACILITIES: Credit terms that are convenient to the client and detrimental to the firm being represented by the sales ­professional: “Don’t worry about the payment; we will not take you to court for ­being a little bit late.”
  2. DISCOUNTS: Discounts that disrupt the pricing strategy of the firm that is being represented by the sales professional. Such discounts ­negatively condition the perceived quality of the product and ­negatively impact on the pricing strategy of other salespeople in the organisation: “I know one of your colleagues is selling the same ­product cheaper elsewhere!”
  3. EXTRA SERVICES: Providing extra unpaid for services that cannot be repeated and thus set a precedent that makes the next sale more ­difficult to achieve: “Last time you gave me free shipping on a smaller order, why are you charging me for same-day delivery this time? This is unacceptable.”
Last modified on Monday, 29 June 2015 13:25
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