28% of B2B Discounts Are Totally Unnecessary



exhales TVs managers and directors you'll be interested in this I recently reviewed a lengthy study on b2b discounting by sale surveys Inc that included post purchase surveys of hundreds of c-level executives involved in $50,000 and up corporate purchases and in one segment or one section of the survey they asked a fascinating question they asked the buyers if they received any discounts after the final vendor have been internally selected but not yet publicly announced the results apparently shocked the survey analysts 28 percent of the respondents answered yes now properly understood or interpreted that means on average at minimum 28 percent of b2b discounts offered as leverage to close sales are totally entirely unnecessary something I've been preaching for over 20 years but there's a catch only a salesperson equipped with sales specific negotiation skills and knowledge would know the difference well your reps would they know how to identify and avoid unnecessary discounts or how to eliminate unwarranted or unjustified price or contract concessions would they know how to say no without actually using the word no would they recognize buyer tactics infamous for manipulating sellers into discounting and are they aware of seller counter tactics that will professionally neutralize buyer tactics without jeopardizing the sale a relationship for the untrained seller discounting is their only weapon it's their only tool their only answer for the untrained seller discounting becomes a substitute for negotiating in fact for the untrained seller discount he becomes synonymous with selling which is of course a mistake a mistake that leads to chronic discounting habits and an epidemic of salespeople who discount too much too fast and too often and give away ungodly amounts of profit in the process now surveys from that same report on b2b discounting but on the sales side of the equation ask these b2b sales people about their background their experience their training etc and another startling statistic emerged when asked if they had ever received sales specific negotiation training 94% of them answered no basically nine and ten b2b sellers have never been trained in sales side or sales specific negotiation resulting in sellers who unwittingly rely on discounting instead of negotiating to close or win sales who volunteer unnecessary price concessions who donate told me unwarranted or unjustified discounts without volume duration or perhaps payment justification and who in the process diminish product value erode brand status and lose trust you know they say that hope is a terrible strategy and that to hope kind of maybe sort of on a good day with a downhill wind that your reps will somehow know how to identify and avoid unnecessary discounts and price concessions but still wishful thinking it's like sending soldiers into combat on hopes and prayers but without weapons and like soldiers if you don't train them you can't blame them fortunately the opposite is also true I'm Patrick Henry Hansen founder of Patrick Henry international we are an advanced sales and negotiation training company that helps sales people and organizations consistently win more sales with fewer discounts higher margins and increased profitability sale after sale after sale we help sales departments reverse the unhealthy discounting trends of salespeople who habitually discount too much too fast and too often our combined classroom instruction online videos elearning review and reinforcement tools an ongoing coaching program sure salespeople acquire the sales and negotiation skills they need to avoid unnecessary discounts and eliminate unwarranted price and contract concessions I've delivered over 1200 trainings in over 22 countries to over 150,000 sales professionals representing hundreds of businesses worldwide who on average experience a six point eight percent increase in annual sales and 3.1 percent increase in sales margins we're confident we'll deliver similar results for you if you're interested in learning how Patrick's sales side negotiation keynotes or trainings can help your business or sales organization increase sales decrease discounts and improve profitability call eight eight eight P hi9 two three two or email info at Patrick Henry Hanson comm you

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