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.

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