That is a false dawn of hope on the part of our intrepid hero or heroine. This tactic may be misinterpreted by salespeople, who don’t know what they are doing, as building trust and a good relationship with the client. The client hasn't even requested a discount, begun haggling, attempted to massage the ask and yet lo and behold, a miracle has just popped up without warning. Or, “if you buy two, I will drop the price by x”. They say stupid things like, “normally the price is x but I am going to offer it to you for y”. It usually is a path to our removal by the sales manager, who understands we are unable to sell.Īmateur salespeople, when they don't believe in the price, start right off the bat with a discounted price. Dropping the price may be easy, but we never build the skills to really succeed in this profession. The ability to meet the price requirement is a critical piece of the salesperson’s skill set. This is a short-term gain for long-term pain. Because of this they can discount with gay abandon. The key problem is that the salespeople often don't believe in their own product or service. This reduced price immediately impacts our commission and if we keep doing this, will also impact our bonus and job security, as we don't bring in enough revenue relative to the target. Offering a discount seems to get the buyer in a good mood and more likely to give us a yes. The instinct of the salesperson then is to make the price as malleable as possible. Our self-esteem is totally tied up with getting sales, modest in size or otherwise. We are just happy to (A) not get rejected by the buyer and (B) get a win, however small. Do we know the profit margin attached to each sale? Usually no and actually we don't often care either, as long as we get paid. If we are on a fixed salary and bonus or base salary and commission, the two usual cases in Japan, we get paid when we make a sale. We have learnt that getting a sale is what counts and price is an obstacle in that process. Salespeople are total wimps when it comes to price. Regardless, the salespersons task is to sell at that price.
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The latter is often the case when arriving at pricing for services.
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Or, it might be a slightly moist index finger boldly thrust skyward to come up with a number. It might actually be an elaborate process, where multiple variables are carefully calibrated, mathematical formulae are applied and a price is arrived at. This is usually an obscure outcome decided by someone else inside the machine. Salespeople don't set the price of what they sell.