Why sales management view of pricing matters?

Is the sales manager involved in developing your pricing strategy?

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. Thus, many business chose to introduce a control and command structure. In short, they installed a pricing team to eradicate crazy pricing from the system. As a result, it didn’t work out as planned …


Sales managers were told they were not allowed to set prices anymore. And pricing teams were told to act like pricing policemen. Obviously, 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. In effect, 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 is a real problem for business. In this article, we will go through all the different ways sales management teams enable pricing teams to optimise revenues.


What is a sales management team?


Sales management comprises the sales force, operations and practices to make the business reach its target sales. Altogether, 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 feedback 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 A Competitive Market


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


It is the sales management and its salesforce that know more about the real competitive tensions and nuances in a market. A salesperson is a vital part of the picture.  Generally speaking, 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, it provides enormous help in measuring the performance of sales management and in allowing salespeople access centralised customer databases. The data flows both ways. Therefore, the salesforce sends data on detailed account and competitive information to a database, and management keeps track of customer transactions and preferences.


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. In fact, 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 sales management to win more profitable sales and a high-performance sales force to get the right customers. Thus, they are the direct link between the products and the customers. In effect, they matter in the company.  Namely, the pricing team study what transactions are important. The executive team strategize on the best actions to take. Therefore, the sales and pricing teams identify key margin risks and develop better pricing schemes that maximise margins – and adjust accordingly.


At the same time, no two businesses are alike. The same goes to sales management pricing, the pricing strategy, structures and operations must align with sales objectives and vice versa.


Sales Analytics


With every sales transaction, businesses’ are generating crucial data on customer purchases. Including the ability to highlight the hottest item today. In effect, what’s going to be popular to shoppers tomorrow. What’s not working so well. Additionally, this helps the pricing team and sale manager plan any price changes for new products and launches. What’s more, 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 a pricing organisation. They manage the salesforce CRM. Therefore, they drive KPIs and sale objectives, reinforcing the strategic priorities of the business; and ultimately raising the revenues of the company.


In every business, there’s a sales cycle.  This is a series of steps that sales management follow based on how products reach prospective customers. From the initial query to the finalisation of the sale.


The sale manager gathers all the data from the sales CRM / ERP, quoting tools and qualitative customer feedback. Hence, they then work closely with the pricing team to translate and interpret the data to find revenue and margin opportunities in the market. In summary, a process which enables the business to calculate the right prices for their products and services. Including winning more profitable deals and sales.


Sale Pipeline


A sale pipeline is a tool used by sales managers and their teams. Hence, it’s a progressive line of communications and actions to monitor and track different customers along a sales process: i.e., from the initial prospect to final sale. The pipeline helps sales to understand what the buyer want. In essence, pipeline stats such as quote to book or won or lost sales help the pricing team understand what prices are converting and what prices customers are rejecting.




  • 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 strategy or structure for new and existing products.


  • Field sales input gives the pricing team a much better picture of the market which they then use to improve price positioning and new product pricing.


  • Understanding the parameters that influence the buyer’s decision to buy from the business can help the sales manager and pricing team set optimal prices by product and segment.



Good pricing teams always seek input from sales managers. They know sales management teams are close to the customers and gather their feedback to understand the commercial nuances of the market. Without input from the sales team, pricing teams are somewhat removed from the market and customers. Sales managers are at the forefront of the customer transaction, most pricing teams are not. One of the pricing team’s goals is to help sales win more profitable sales and give them tactics to generate profitable revenue growth. In conclusion, listening to sales teams input on pricing is crucial to developing a commercial pricing structure that customer actually value and are willing to pay for.


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


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