Top 3 Reasons That Sales Negotiation Training Will Increase B2B Revenue In 2022
Top 3 Reasons That Sales Negotiation Training Will Increase B2B Revenue In 2022
As the Head of Business Development for Selling To Corporate ?, an accredited sales training business, I am talking to clients every single day who sell B2B.? One of the most important aspects of the sales process that is lacking right now, according to these Sales Directors, is Negotiation.???
Negotiation is without doubt one of the most important aspects of the process but often gets firmly overlooked when it comes to training and personal development.? Investment lies around CRM systems and marketing integrations which can help, if utilized correctly.? However without possessing those core negotiating skills, it will all be in vain as sales revenues do not increase proportionately to both budget and investment.
Here’s my top 3 reasons why negotiation training should be top of your priority list:
Renewal Revenue
Many businesses especially in the sports sector are finding renewals more difficult, with revenues decreasing and often walking away.? Even the very peak teams, such as Mercedes-AMG F1 Team have lost around €7million in sponsorship before the new season from Epson and Bose leaving deals.
Better negotiation can help in a number of ways, either through retaining revenue, increasing revenue or selling alternative options that free up more valuable assets.? That’s before we even talk about USPs.?
Negotiating Away From Discounts
First thought for most sales people is negotiation = discounting.? We’ve all done it.? But the issue here is when your sales team just discounts everything.? Their go to reaction on a sales call is to drop prices because it seems simpler and they have failed to diagnose what the key buying indicators are, to utilize these in negotiation.
Your revenue continues to decrease, whilst your targets and costs continue to rise.? With finite amounts of product to sell, this is wholly unsustainable. ? For example:
Just 3 years of discounting existing revenue by 5%, with a ￡200k annual budget rise leaves you with a shortfall of nearly ￡500k.
Major teams like FC Barcelona are not immune to decreasing revenues. From 22/23 it is believed Spotify will spend €280m over 3? sponsoring the club which looks like a big increase over Rakuten’s 5 year €275m spend on shirt sponsorship.? However, to secure this revenue Barcelona have included both their training kit sponsorship (currently €10m per year with Beko) and the overall naming rights of the Camp Nou.? The value of this could be worth up to €30m per year.? The suggestions are, Spotify also will replace Stanley as Women’s Team Sponsor.? Adding extra inventory does not always mean the best revenue for your business.? Let’s not ignore the potential loss of 3 major brands either!
Improving Lifecycle Speed
“I wish we could get deals to close faster”? - if I had a gold star for every time I heard that.? Deals often falter at the point after the proposal - this is the negotiation and closing process.? Why?? Because sales execs don’t know what to do, and often revert back to assuming a client doesn’t want it, because it is too expensive.
Better negotiation, at different phases of the process will undoubtedly lead you to generate more revenue at a faster rate, leaving more time to secure additional corporate sales.
Summary
These trends are just a handful of areas Selling To Corporate have seen improve for B2B Corporate Sales clients teams following Negotiation Training.? As a result, we have created a Sales Negotiation Workshop which has proven so popular we’re continuing to offer this in Q1 2022.? A two hour workshop which will see your sales team become motivated to negotiate every single deal - new and old - in a much more revenue and profit conscious manner.
If you are a senior sales stakeholder and would like to explore how Selling To Corporate ? can deliver this workshop for your team, click the link to book a free consultation with me today.
Author:
Robert Cutler
Head of Business Development
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