Once a company finds itself in the commoditisation trap, it becomes an expensive and time-consuming process trying to climb out of it and rebuild value once more.
Wilmslow, Cheshire (PRWEB UK) 19 February 2013
As UK business buckles under recent revelations concerning the fall of the pound against the euro and the dollar, fears the UK may lose its triple-A credit rating are increasing risk for the B2B sector, who brace themselves for a continued period of survival rather than growth in 2013.
At such a time of increased competition and buyer demand, the protection of margins is paramount in order to ensure survival. However, Pareto sales training experts have unveiled a significant increase in those UK companies falling into the commoditisation trap, undercutting competitors on price in order to gain market share. As a consequence, UK business leaders are eating into profit margins and reducing their product or service offering to a commodity, where price is the only determining factor in the decision-making process.
The result, Pareto Managed Services Sales Director Bryn Thompson observes, is not only damaging to the profit-and-loss sheet.
“Commoditisation is becoming increasingly prevalent throughout the B2B UK marketplace, but embodies a number of potentially damaging factors that can impact upon the long-term success and profitability of the business,” Bryn explains.
“Stripping down product and service offering to a single determining factor and placing it on par with competitors in every other respect devalues the company portfolio and brand, impacting upon positioning within the market. With price as the only differentiator, all those unique attributes that make the organisation different are simply lost. There is no USP: price is the be-all, end-all. Once a company finds itself in this trap, it becomes an expensive and time-consuming process trying to climb out of it and rebuild value once more.”
Rapid advancements in technology, increased globalisation and developments in communication, research and development have effectively levelled the playing field for the vast majority of organisations, both within the UK and abroad. Having the capacity to tell customers and clients that one business alone can offer this particular product or service is becoming an increasingly rare event. The bottom line is: it’s rarely about the product. Therefore, points of value for the customer or client must go beyond the core portfolio to develop an augmented and tailored offering that will differentiate the organisation to elevate it from its competitors. Sales training can provide the solution.
“As the ultimate link between the organisation and its customers, salespeople are on the frontline of the business and, therefore, hold the power to build or destroy value for the business,” Bryn Thompson continues.
“Equipping sales teams with the tools they need to protect against the commoditisation trap is key to survival.”
Specialists in sales training and development, Pareto experts have devised practical advice and insight into the processes required to overcome the curse of commoditisation, including the identification of differentiators and methods for building value in the course of the sales process. ‘The Commoditisation Curse’ white paper is now available to download from the Pareto website.
About Pareto Law:
Pareto Law is the UK’s biggest and most successful sales enhancement company: the authority on sales, no less, since 1995. Pareto brings companies the 20% of the sales team that makes 80% of the difference.
The Pareto Effect can be experienced in many ways and it can have a remarkable, measurable effect on your business. Pareto delivers this effect through four key elements – Sales Recruitment,Sales Training, Executive Recruitment and Accolade Sales Transformation, the assessment and accreditation service that delivers sales excellence.