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Companies want to launch new products, but salespeople are the opposite—they fear new products the most. Why? Although new product launches can increase salespeople's volume, companies will undoubtedly keep raising sales targets. Moreover, before a new product launch, salespeople must use their visit time for many tasks, such as pre-launch market research, surveying outlets, distributors, competitors, and consumers, and following the orders of those "lazy" marketing staff who never go to the market but only direct. At launch, they bear the burden of blanket distribution; if products don't get placed or coverage is low, they face criticism from leaders. After distribution, they worry about secondary turnover, with the company monitoring rates daily. If sales are poor, they must help the company or distributors clear inventory. In short, for salespeople, new product launches are all bad—and if unsuccessful, it's even worse.
Additionally, salespeople fear one thing most: high product prices that no one accepts initially, making promotion impossible and leaving them frustrated.
Since new product promotion is said to be difficult, and during the launch period prices are indeed higher than competitors or exceed salespeople's psychological limits, what should salespeople do?
Case Study: When Coca-Cola launched its Qoo series, its price was 20% higher than competitors, but through well-organized market operations, it achieved a prominent market position.
Many other companies have also successfully launched products at higher prices than competitors. This is common in any enterprise.
In reality, product pricing is now generally based on consumer acceptance, with fewer products priced according to profit requirements. Although competitor-based pricing is common, many companies set prices slightly higher than competitors (for FMCG, one to several yuan higher), not necessarily lower. It's a common practice for companies to price higher than competitors or position products at a premium.
As long as salespeople can uncover the supporting points for high prices during visits and communication, and get customers to accept them, high-priced products can sell well—even better than competitors and better than expected.
Based on real-world validation, when new product prices are high and cannot be reduced internally, salespeople should focus on the following:
- Distribute as widely as possible to create a clustering effect Distribution is the "final kick" for new product launches and the "first trick" for any salesperson. High prices may make it harder for intermediaries to sell to consumers, but during distribution, intermediaries focus more on price margins than just the price. So, even with high prices, it's possible to distribute well by leveraging margins or other benefits.
For the company, although the price is high, there must be some advantage in the intermediary margin. Salespeople must clearly distinguish between high price and high margin to remove obstacles to distribution and sales, and quickly complete the distribution work.
- Develop a visit guide for new product launches If the product price is indeed high and the margin isn't enough to attract distributors or consumers—meaning they may raise objections—the company should create a unified "launch visit guide" or "objection handling guide" before salespeople visit.
Identify all potential issues that distributors or consumers might raise, as well as salespeople's own concerns, and find all the product's (and even the company's) advantages to address these issues (with compelling evidence), described in conversational language. This forms the core of the "new product launch visit guide."
During a new product launch, regardless of whether the price is truly high or reasonable, the first reaction at any distributor or outlet is "It's too expensive!" Getting favorable terms is a buyer's instinct in any transaction. This guide helps distinguish between genuinely high prices and buyers seeking discounts, making it easier for salespeople to resolve objections.
Bringing issues to light and finding a unified, best response is a crucial step in new product promotion.
- Find evidence of strong sales appeal and justification for high prices New products are often like newborns—the newer, the more cherished. So, both the company and salespeople should find supporting points behind the new product, such as brand strength, product appeal, channel power, and sales team strength. The newer the product, the easier it should be to find these points.
How to find them? Like pharmaceutical companies' promotional materials listing "several advantages" of new products—strong consulting firm guidance, secret formulas, huge market potential, close service and support, strong brand backing, new concepts, new markets, etc. Although the price is high, these hidden aspects can help distributors make money, and the company has thoroughly researched consumer needs, implying factors that make consumers "must-buy." In short, even if the price is high, the product is "value for money," and consumers will buy enthusiastically because the company has studied them.
Of course, we shouldn't boast without basis; we should genuinely explore, such as in the salesperson's own market, where other factors like weak competitors or high consumer spending power can be used to persuade clients during new product promotion.
- Secure distribution policies (not sales policies), such as free goods or drink samples The distribution process differs from the post-distribution sales process. The key metric during distribution is not sales volume but effective distribution points, aiming to get more customers to try the product. So, promoting one-time purchases is crucial, and securing distribution policies to get customers to accept the product quickly is very reasonable.
Everyone is familiar with sales policies, but may confuse distribution policies with sales policies. Distribution policies are usually one-time and non-continuous, while sales policies mainly promote circulation. Distribution policies target outlets and consumers, such as display rewards or purchase gifts for outlets, and gifts for consumers. Effective distribution policies help the product penetrate all market corners.
- Find value-added methods, such as service and convenience If the product price is high and you want consumers to pay more, the company or salespeople must find ways to add value, such as better service, greater convenience, more convenient packaging, faster delivery, and more satisfaction beyond the price.
Salespeople can also provide value-added services during customer interactions, using non-price satisfaction to offset price complaints.
A high price for a new product doesn't necessarily mean it's hard to sell or won't succeed. During promotion, discovering more advantages and providing more value-added content are key ways to address high prices.
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