Why sales management view of pricing matters?

Is the sales manager involved in your pricing scheme?

What is the sales structure in your business?

What is your CRM pricing scheme?

Who should manage sales reporting?


Do Not Ignore Sales Management when you price


In the past, it was the sales teams who owned pricing; and the full authority to price was at their own discretion.  Including offering large discounts and special prices to get a deal over the line.


However, over the past twenty years or so, more businesses have been advised to install a pricing team to improve their price management and price-setting operations. Many business chose to introduce a control and command structure.  They installed a pricing team to eradicate crazy pricing from the system. It didn’t work out as planned …


Sales managers were told they were not allowed to set prices anymore. Pricing teams were told to be pricing policemen. A lot of companies even stopped to ask the sales team to give their input to the pricing team on what they thought the proper price should be. The pricing team quickly became an object of resentment – a hurdle or barrier for growth.  Their mandate was to control and protect not to collaborate and drive growth.


The control and command pricing team isolates input from the sales teams began the real problem. Not the pricing team’s existence and real purpose.


Good input


Good pricing teams always seek input from sales managers. They know sales management teams are close to your customers. Without input from the sales team, pricing teams are somewhat removed from the market. Sales managers are at the forefront of the customer transaction, most pricing teams are not. Pricing teams role is to help sales win more profitable sales and give them tactics to generate profitable revenue growth. Listening to sales teams input on pricing is crucial to developing a commercial pricing structure.


What is a sales management team?


Sales management comprises the sales force, operations and practices to make the business reach its target sales. The management keeps up with the changing business trends of the industry to stay ahead of the competition.


Aside from giving raw data from the field, they provide opinions and suggestions in the development stage of the product. They are experts in reading the market, can do research on the competitive market and find potential new profitable areas. The sales management uses personal feedbacks and customer relationship management (CRM) to get the data for the pricing team. The CRM provides the needs of the customer and improves results from sales transactions.


Having a sales manager in the pricing scheme who has knowledge will give the pricing team more tools on pricing.


How Does Sales Management Get Involved in the Pricing?


      • Identify market trends like what is selling the most
      • Know what the competitors’ prices
      • Affordability of the consumers
      • Review old accounts to keep track of accurate pricing
      • Inform guidelines to find the best customer pricing
      • Educate sales force with value-based pricing and negotiations
      • Analyse contracts and provide recommendations





The Real Situation in Competitive Market


A good example is the Mcdonalds’ value meals. The food chain faced fierce competition from the other fast-food chains. The sales management were able to get input from customers what they want in their meals. They found out that they want a combination of different items on their plates for cheaper price. The inputs created the value meals.


It is the sales management and its salesforce that know more about the real competitive market. A salesperson is part of the picture.  More detailed information is formed from sales data. The pricing team integrates the incoming sales data and focuses on changing trends and patterns.


Changing Technology in Sales Management


Changing technology has made computer analyses more powerful and mobile, combined with the improved applications, it provides enormous help in measuring the performance of the sales management and in allowing salespeople access to centralized databases. The data flows both ways. The salesforce sends data on detailed account and competitive information to a database and management keeps track on their transactions.


The decision-makers of the business should view the sales management’s importance as technology has changed the role of the sales manager in the past three decades. From a tactical to a strategic point of view,  it will redesign the sales force in terms of selling capacity.


What is SalesForce in Sales Management?


It is essential to have good sale management to win more profitable sales and a high-performance sales force to get the right customers. They are the direct link between the products and the customers. They matter in the company.  You study what transactions that need monitoring, strategize what actions to take, teach personnel what to avoid problems, and develop better pricing schemes.


Managers have a direct impact on the employees and the bridge between the top-level executives and the rank-and-file people. They convey what the executives want done and the representative of the employees to the management.


No two businesses are alike. The same goes to sales management pricing, the pricing scheme must meet the sale objectives and pass thru the business system without any obstacle.


Sales Analytics


With every sales transaction, you generate data to identify sales track, highlight the hottest item today and what is popular to the buyers. This helps the pricing team and sale manager to plan any price on upcoming products. And it keeps the sales manager up to date on performance charts, pipeline and monthly sale goals.

Importance of Sales Management


Sales management is integral to the business organisation. They control the sales force, providing sale objectives to the team, enforcing the aims of the sales operations and ultimately raising the revenues of the company.


In every business, there is a sales cycle that aids the company to reach to the buyers. It’s a series of steps where the sales management follows on how the product will reach the prospective customers. From the initial query to the finalisation of the sale. All these lead to what is the fair price.


The sale manager gathers all the data from the feedback of the buyers and analyse the data with the pricing team. They find the right price for the product.

Key Principles in Sales Management


To an effective sales manager, you need these key principles;


  • Take care of your salesperson one at a time. You can’t lead a sale force in a group. Each one has a unique talent to talk to customers.


  • Be an example to your team. A leader guiding their team motivates them more.


  • Inculcate them to follow the rules. An undisciplined group is difficult to handle.


  • Set your objectives. Know what your goals can get you organised.


  • Be part of the action. Get your hands dirty and be involved in the sale process.


  • Always be straight to the point and clearly states what needs to be done.


  • Always follow the golden rule. It states, “Sell unto others as you would have them sell unto you.”




Sale Pipeline


A sale pipeline is a tool by the sales manager use. It’s a progressive line of actions of the salesperson with the customer from the initial prospect to final sale. He studies the sale pipeline to see what the buyer wants and what the business solution is applied and this can be factored in the pricing scheme.



Marketing Leads


To see how the sales management pricing scheme works in the company, you must understand marketing and sales funnel to see how leads can determine the price of the item.


A lead is someone or a company that wants the item you are selling. They help the sales management to know the fair price by analysing their feedback on their needs, the daily challenges they face to find the right item and other parameters like country, industry type, size of the organization, and a number of users.


It is imperative your pricing scheme is fair and understood by the prospective buyer or they would just choose other similar products. It is the sales force’s responsibility to convince the buyer they are better off with your product. Other things to consider are the terms and conditions of the sale, validity, services in the price and possible discounts.



  • Observations and inputs of the sales manager on customers’ habits and feedback can be a valuable tool for the pricing team to plan any future pricing scheme on similar products.


  • This gives a better picture of how the competition prices their products by asking the buyers and what do they want.


  • Understanding the parameters that influence the buyer’s decision to buy can help the sales manager and pricing to set the fair price.




  • Effective sales management strategies are important to the pricing team price scheme.


  • The sales manager is at the forefront of the business. They know which items are selling well, what the buyer wants and how much they can afford it.


  • Sale management along with the sale force is what bring in revenue for the business and without which the business will fail.


  • The pricing of products is multilayered. It involves research, predicting the market, affordability of the buyers and the competitors’ actions. Sales management knows the real situations.


If you would like more information on Sales Management, then download our free pricing guide or e-book now.


Or, feel free to call me on (2) 91994523


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