Worksheet: Give sales a target, a floor and a walk-away price

Without guidance, the reference point in a negotiation is what the customer paid last time. This sheet sets three prices for your ten most common deal situations and puts them where sales quotes. It builds the Competent step of the check:

Target, floor and walk-away prices exist for standard situations and are visible at the point of quote.

Step 1. The ten most common situations

#	Situation (customer type, order size, product group)	Deals a year	Typical discount today	Range of discounts given (lowest to highest)
1
2
3
4
5
6
7
8
9
10

Step 2. Three prices for each

Situation	Target	Floor (approval needed below it)	Walk-away	What sales can trade before price
e.g. Trade account, 5 to 20 tonnes, stock lines	List less 8%	List less 12%	List less 15%	Delivery window, payment terms, order size

Set the walk-away at or above the price that still covers the deal's cost to serve.

Step 3. The menu at the quote

Each option has a fixed price effect. The rep changes options, and the price follows.

Option	Standard	Better	Best
Delivery	e.g. Three days, list	Next day, +3%	Same day, +6%
Order size
Payment terms
Technical support

Step 4. Where sales sees it

Tool (quoting system, price file, CRM)	Shows target, floor and walk-away?	Date live

Done when: the ten situations have target, floor and walk-away prices, and sales sees them in the tool it quotes from.

Adapted from our own menu pricing method (PSP, 2003).