

Before You Sell Do The Math
This is an important and potentially profitable piece of advice. It goes like this  before you ever attempt to sell any products and services  do the math.
Doing the math means you have to know certain numbers. These numbers include:
• The sell price. • The cost of the product. • Shipping and transportation costs. • The available margin percent. • The available margin dollars. • The formula for calculating standard gross profit.
Avoid discounts like 5%, 10%, 15%, 20%, 25% etc. You should avoid discounting at all  but that's another topic. If you must put a price concession on the table  do it with dollars. For example, if you're selling a product that has a list price of $795:
Most salespeople would say  "If you order today I'll give you a 15% discount."
Another option is to say  "If you order today you'll save $103."
To the average person (not the person with the spreadsheet mentality) $103 sounds better than 15%. Don't assume everyone will rush to get his calculator to do the math. Not only does $103 sound better to your customer, it's also better for you. You end up offering a 12.9% discount instead of giving away an even 15%.
If you, your product, and your company are good  you don't have to have the BEST PRICE to win every order. This strategy will keep you close to the competition and also make every transaction more profitable for you and your company.
"Profitability is the applause of a happy customer."
Never leave home without a calculator  never!








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