Money Talks
Money Talks
How confident is your team when it comes to talking money?
Financial literacy isn’t typically taught in schools, and many salespeople only learn about budgeting and P&L when they transition to management. This leaves them unprepared when customers say, “we don’t have the budget.”
Many salespeople have the gift of the gab and can talk about anything, but when it comes to money, they freeze. Their awkwardness in discussing money can make customers feel that the salesperson lacks confidence in what they’re selling. Even if they’ve mastered the other six sales skills, a lack of financial literacy can be their Achilles’ heel.
Salespeople with high Financial IQ understand how financial decisions are made and confidently discuss money. They see price objections as opportunities to demonstrate value and often win against cheaper competitors. Here’s a snapshot of the difference between low and high Financial IQ:
| Low Financial IQ | High Financial IQ |
|---|---|
| Avoids talking about money. | Loves talking about money. |
| Discusses money late in the process, unsure of customer price expectations. | Raises money early to clarify expectations and address objections. |
| Relies on discounts to close deals. | Focuses on return on investment to close deals. |
| Sees a price objection as a show-stopper. | Sees a price objection as an opportunity to demonstrate value. |
| Struggles with value proposition, thinks offerings are too expensive. | Confidently explains value and why customers choose them. |
Unfortunately, many companies take a sink-or-swim approach to financial literacy. While some salespeople figure it out, many fall into discount limbo. On the flip side, companies that build their team’s Financial IQ unlock tremendous value for their company and customers alike.
I’d love to hear your thoughts. Which side of the table does most of your sales team sit on?
Mark Windust is an influential Thought Leader in the areas of Sales Strategy, Sales Leadership and Sales Performance. Since launching his consulting practice in 2007, Mark has worked with 1000's of business leaders, salespeople and entrepreneurs’ to help them transform their sales results.