Nearly half (45%) of B2B companies do not have programs in place to help their sales reps articulate value to prospects in the latter stage of the buying funnel in order to close more profitable deals, according to new research from Corporate Visions.
The study surveyed more than 300 B2B marketing and sales executives on their company’s price negotiations. Of those companies that do formal negotiations training, 48% noted their company focuses on late-stage sales negotiations to avoid excessive discounting and save profit margins near the end of the buying cycle. The other 52% said they are focused on plugging potential margin leaks throughout the entire buying journey.
Additional findings in the report revealed that 20% of respondents believe giving away things of value without asking for anything of value in return is their biggest sales negotiation problem, and 14% said their reps are too quick to discount prices without regard to company policy.
“The newsflash here is that margin erosion isn’t just coming from customers putting pressure on price concessions,” said Tim Riesterer, Chief Strategy and Marketing Officer for Corporate Visions. “The survey indicates the primary problem is actually salespeople’s inability to create a perception of value and a lack of confidence to claim that value. It’s clear there’s also still a need for companies to provide formal negotiation skills training that’s not focused on the buyer’s tactics, but rather on the salesperson’s skills at capturing value.”
