I overheard a recent conversation between two sales people: “I’ve got to spend some time this week doing quotes: I have two accounts that are pressuring me to provide pricing in a hurry. They called and said IF my prices were competitive, they might give me a shot at their business.” Have you ever been asked to provide pricing to accounts that might give you business? What parameters must be met before you quote pricing?

Two principles to consider before issuing a blind quote: First, never issue a blind quote unless you know at least ten facts about the decision-maker and his business; Second, what agreement/assurance is in place with your customer that guarantees IF your prices are truly competitive, you will receive the order?

In his book, Transforming Your Sales Force for the 21st Century, Dave Kahle suggests building an Account Profile and Personal Profile for each of your accounts.

The Account Profile contains useful strategic information, which assists in making good decisions about allocating sales resources and developing marketing plans. This profile can include: type of organization by SIC code; the size of the organization expressed in annual sales and/or number of employees; specific and quantifiable potential for annual purchases of your products; categories of your products that the customer could use; analysis of the subjective factors your customers may have for buying from you; the customer’s primary buying motivation; the customer’s future plans (growth, expansion); and your current penetration percentage of that customer’s business.

The Personal Profile is made up of tactical information that the sales person uses in face-to-face interactions with the decision-maker. This profile includes details about your contact, such as: tenure at the organization including other jobs held in that organization; current job responsibilities including likes and dislikes; outside interests like hobbies, favorite sporting events, and recreational activities; achievements including education, schools attended, professional interests, career hopes, dreams, and aspirations; family, including names and interests of spouses/significant other, and children; place of residence — they may be your neighbor — and family heritage.

In our world of increasingly sophisticated automation, a powerful Customer Relationship Management (CRM) system is a critical resource for success in the sales profession. CRMs provide valuable insight into customers’ goals, values, problems, and perceptions of suppliers.

Only after you are properly informed about the customer, have reviewed strategic information, have established a business and personal relationship, and developed a tactical engagement with the decision-maker, should you ever consider offering pricing on such a request. Ignoring these rules can trigger an adverse pricing model for your organization. Blind quotes are similar to offering a hamburger patty without the bun or condiments; never quite fulfilling for either party!