Sell Better.
Do Your Sales People Make Unnecessary Price Concessions?
If your salespeople were really good negotiators, do you think they could close deals, on average, at a 1% higher price? If that seems reasonable, consider the value added straight to your bottom line. Consider a typical example:
Sales | 100 |
Costs of Goods Sold | 60 |
Selling & Administrative Expenses | 25 |
Interest, Depreceiation, etc. | 3 |
___ | |
Net Income (Pre-Tax) | 12 |
Now add a modest 1% to sales revenue as a result of better negotiating, making it $101. If the negotiating is skillful and graceful, the 1% higher price won't cause a loss of sales. Other expenses remain the same and the extra dollar of revenue falls straight to the bottom line. Now we have $133 of Net Income, and increase of 8.3%! If you can negotiate, on average, a 2% higher price, Net Income soars to 16.6%!
Here's some good news: Skilled sales negotiators close more profitable deals and build better, longer lasting customer relationships at the same time.
ZEHREN♦FRIEDMAN provides the skills training sellers need to sell better.
Learn more about our selling skills courses focused on:
- Sophisticated Selling Skills (focuses on face-to-face calling skills)
- Winning Competitive Sales (focuses on strategy and action plans)
- Sales Management and Sales Coaching (from relationship planning to buyer decision analysis)
- Contact us for tailored selling skills training