Elasticity in sales

In sales, it is important to know about elasticity and what it does. Elasticity is the ability to change and adapt to sales prices as well as product features. It is ever-changing and customers have mixed feelings when it comes to it. Elasticity helps companies maximize revenue as well as find the ideal pricing. Say a company starts a product at a certain price and no one is really buying it, it could be because the product is too expensive. If you drop the price and people are buying it but you aren’t making much revenue, then the price could be too low. Elasticity is about finding the medium where customers are buying but the company is still making money. Once you find that then you will start to see your company maximize revenue. What is important is to have the ability to adapt, if not then things will be tough. Without being able to adapt you will never be able to make money. As we mentioned in class and one of the Sandler rules, “adapt or die.” Being able to know customers’ purchasing decisions by using elasticity can help you design ads that target specific demographics of prospects you are hoping to target. Customers don’t like to be sold, they like to buy, so adjusting your marketing strategies to attract those customers is only beneficial in making more sales. Today, big companies are trying to cut sales more and more, thinking they don’t need them, and they cost too much. But in reality, sales should be getting more money because, with a good sales team, that is how you can generate greater revenue. Using elasticity to target product pricing and tailoring ads to appeal to prospects is how your company grows. If you’re not using elasticity in sales now, you are already losing the game.