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by NikolaNovak 1860 days ago
I feel you're not alone, it's just that - rightly or wrongly - they seem to genuinely optimize for "Max sales I can squeeze in TODAY/RIGHT NOW", rather than "Max sales I can squeeze in overall". I mean, their whole incentive structure operates this way - neither salesperson nor their boss get commission or bonus on sales that happen at some other point in the future when you may or may not be there, and may or may not be the one to make it. This happens on macro/corporate level too - quarterly sales / revenue targets, future be damned.
1 comments

I disagree, and think this could actually be a good overall optimization technique. If the product you are selling is overpriced (not a bad value per se, but maybe ~35% above where it could be) then the sales person should absolutely optimize for the immediate sale. You get to sell RIGHT NOW at a high markup, and any time you would invest later trying to close a deal at a lower price can instead be spent selling someone else at a high markup. There's obviously no opportunity to close later at a higher price, since by then the customer has had a chance to shop around and discover true market pricing.

This works particularly well for large one-time sales where pricing information is scarce and the relationship is less important. Example: sales for replacement windows, doors, roofs, etc.

Indeed, it must work somehow, or else they would no longer be in business. I think it also has to do with demographic. Some people are just easily persuaded by these kinds of offers, so if there is a hole in the market, someone will fill it.