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How to use SIPOC for sales to create pricing charts for sales decks

Written by Lidia Vijga
How to use SIPOC for sales to create pricing charts for sales decks

SIPOC stands for Suppliers Inputs Process Outputs Customers. In this article, we will discuss how you and your sales team can use SIPOC for sales.

If you’re new to SIPOC diagrams, read our comprehensive SIPOC diagram guide here.

Use SIPOC diagrams to create a Pricing page for your sales presentation

Creating a pricing page for sales decks and presentations can often seem like a daunting task, but using a SIPOC diagram can make this process much simpler. By mapping out each SIPOC element for your pricing page, you can easily identify and organize the necessary information to create a compelling sales deck or presentation.

How to create a SIPOC diagram to create pricing charts and tables for sales decks and presentations

Sales rep using SIPOC diagram to create Pricing page for a sales deck

Step 1. Identify Suppliers and Inputs

When creating a SIPOC diagram, sales reps need to identify all of the relevant suppliers of information that will help them create a pricing page for their sales decks and presentations. It is important to include all necessary parties and Inputs to accurately map out the process.

Step 2: Identify the customer's budget.

When it comes to making a purchase, customers’ budgets can vary greatly. Sales reps need to have an understanding of the customer’s budget to tailor their pricing page and navigate any potential financial constraints.

One way to determine a customer’s budget is by asking directly, such as inquiring about their preferred price range or what they are hoping to spend on a certain product. Another approach is to gauge their level of interest in various options, as well as their willingness to negotiate on price.

Step 3: Analyze customer ROI against proposed pricing.

When determining to price for a product or service, it is important to consider the potential return on investment for customers. By analyzing customer ROI against proposed pricing, sales teams can make informed decisions about how much to charge for their products or services.

Factors that could affect customer ROI include the value provided by the product or service and competitors’ prices. Conducting market research and gathering feedback from current customers can help in this process.

Step 4: Analyze pricing against profit margin requirements.

It is important for sales teams to not only assess how their prices compare to those of their competitors but also how they align with their internal profit margin requirements.

Once sales reps know the acceptable profit margin, they can then adjust prices accordingly to ensure they are meeting both external market demands and company financial goals. However, it is important to note that pricing is not a static concept – sales teams must regularly review and revise in response to changing market conditions and internal business developments.

By taking a proactive approach to pricing and profitability assessment, your sales team can position themselves for long-term business success.

Step 5: Send proposed pricing for internal approval.

When it comes to closing a deal, pricing can often be a sticking point for both the client and internal stakeholders. As a sales rep, it is important to understand the company’s pricing strategy and have the ability to negotiate effectively.

However, in some cases, it may be necessary to get approval from other departments or decision-makers before presenting a final pricing offer to the client. It can take time and careful communication with all parties involved, but ultimately getting internal approval on proposed pricing helps ensure clear alignment on goals and objectives for every aspect of the deal.

Step 6. Create a price table or a chart to include on the Pricing page

A clear and easily accessible price table allows clients to quickly and easily see the cost breakdown for different services or packages, making it easier for them to make a decision. By taking all of the elements from the SIPOC diagram into account, a sales rep can create a comprehensive and realistic price table that helps them stay competitive while also keeping the prices in line with profit margin requirements.

Of course, it’s important to constantly review and update the price table as circumstances change. However, utilizing the information from the SIPOC diagram can provide a solid foundation for creating an effective pricing strategy.

In many cases, it is highly effective to provide 3 tiers of pricing. The idea of offering three pricing tiers may seem counterintuitive at first glance, but it can be a smart sales strategy. By offering low, mid-range, and high options, customers have the opportunity to choose the level of product or service that best fits their budget. This allows for both accessibility and flexibility, drawing in a larger range of potential customers.

Additionally, having tiered pricing sets clear boundaries for customers and can help prevent price haggling or negotiation. Overall, offering three tiers of pricing can be an effective way to draw in a diverse customer base.

SIPOC for sales diagram example

How to increase the effectiveness of your sales presentations and proposals

In the world of B2B sales, first impressions are crucial to success. That’s why it can greatly benefit your sales team to incorporate video narrations into your sales decks and presentations.

Not only does a video narration make for a unique and engaging buying experience, but it also gives clients a chance to connect with and get to know the sales rep on a more personal level.

In addition, video narrating sales decks and presentations adds another dimension of approachability and adds a human touch that can set you apart from competitors who stick with traditional PDF and PowerPoint presentations and proposals.

It can also provide clients with an easy and convenient way to review the information at their own pace. Incorporating video into your sales materials is a great way to increase their effectiveness and capture the attention of potential clients.

DeckLinks is a video platform that allows sales and marketing teams video-narrate their PDF documents like sales decks and presentations. The Video PDFs then can be shared via a trackable link. Engagement analytics allows sales reps and marketers to identify the most engaged prospects and clients.

Watch some video presentation examples here.

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