{"id":16610,"date":"2023-04-26T15:15:36","date_gmt":"2023-04-26T15:15:36","guid":{"rendered":"https:\/\/www.sandler.com\/?p=16610"},"modified":"2023-04-27T18:26:13","modified_gmt":"2023-04-27T18:26:13","slug":"sandler-perspective-focus-2023","status":"publish","type":"post","link":"https:\/\/sandler.com\/blog\/sandler-perspective-focus-2023\/","title":{"rendered":"The Sandler Perspective: What We All Need to Focus on in 2023"},"content":{"rendered":"<p>As we lean into 2023, let\u2019s consider the possibility that what we need to focus on is what is most important\u2026 <strong>us<\/strong>!<\/p>\n<p>Think about it. In the business community, we are always searching for slight edges. We always try to get more business\u2013by earning it. We always want our clients to buy additional products and services from us, and we always want them to become advocates on our behalf over the long term. Those are all things <em>we <\/em>want. And there\u2019s nothing wrong with being part of an organization that wants them.<\/p>\n<p>At the same time, we all face some universal challenges as we enter 2023: a tough employment market, supply chain problems that affect us directly or indirectly, inflation, rising wage expectations, higher interest rates, technology overload, and (last but certainly not least) a softening market in which many buying decisions are being delayed or predicated on a request for a price discount. So: Could <em>we <\/em>handle those challenges better than we\u2019re handling them right now? And by &#8220;better,&#8221; I mean could <em>we <\/em>handle the challenges in a way that truly serves <em>us<\/em> \u2013 so <em>we <\/em>can do a better job of serving our clients, customers, and end users?<\/p>\n<p>I believe we can. Here\u2019s an example of what I mean. Many senior leaders are primarily \u00a0looking to cut costs\u2026 and at the same time looking for ways to drive more revenue.\u00a0 What we need to ask ourselves is: Is what we\u2019re doing in an effort to attain those objectives really serving us?<\/p>\n<p>Let\u2019s think about a hypothetical $100 sale that carries a twenty percent profit margin. Here\u2019s the P&amp;L.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_79_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/sandler.com\/blog\/sandler-perspective-focus-2023\/#The_P_L\" >The P&amp;L<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/sandler.com\/blog\/sandler-perspective-focus-2023\/#The_Sandler_Negotiation_Matrix\" >The Sandler Negotiation Matrix<\/a><\/li><\/ul><\/nav><\/div>\n<h3><span class=\"ez-toc-section\" id=\"The_P_L\"><\/span><strong>The P&amp;L<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: left;\">Sales:\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 100<\/p>\n<p style=\"text-align: left;\">Cost of Goods:\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 10<\/p>\n<p style=\"text-align: left;\">Gross Profit:\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 90<\/p>\n<p style=\"text-align: left;\">Development (Fixed):\u00a0 \u00a0 20<\/p>\n<p style=\"text-align: left;\">Administration:\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 10<\/p>\n<p style=\"text-align: left;\">Sales Expense:\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 40<\/p>\n<p>___________________<\/p>\n<p>Pre-Tax Profit:\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a020<\/p>\n<p>So \u2013 if we take Sales Expense down to $38, we increase Pre-tax Profit, which moves up to $22. That\u2019s a 10% increase. BUT \u2013 what if that $100 could be $105, with everything else staying the same? Wouldn\u2019t that be a better scenario?<\/p>\n<p>In that case, pre-tax profit moves from $20 to $25 \u2013 a 25% increase! Way better than 10%, right? Now: Is that a pipe dream? No. It\u2019s reality. When we practice <strong>not discounting off the list price automatically in an attempt to win the deal<\/strong>, we hold on to more revenue, more commissions, and more market share. And, truth be told, a lot of sales teams out there are needlessly giving away much more than five percent of the list price. As our partner Barry Trailer at Sales Mastery has pointed out, learning not to discount instinctively is essentially the same thing as raising your prices\u2026 without raising your prices.<\/p>\n<p>There is an art to doing this, and it is an art we need to master. It may be tempting to discount on demand in an attempt to get last-minute sales. Such sales come, however, at the detriment of our business.<\/p>\n<p>Here\u2019s a simple <a href=\"https:\/\/www.sandler.com\/wp-content\/uploads\/2022\/11\/Negotiations-Matrix.pdf\"><strong>Sandler tool you can use<\/strong><\/a> that makes discounting your list price a last resort, rather than a \u201cclosing technique\u201d that saps margin, commissions, and competitive advantage. This is how we can learn to respond strategically when we are pressed to cut our list price.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_Sandler_Negotiation_Matrix\"><\/span>The Sandler Negotiation Matrix<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img decoding=\"async\" class=\"alignnone wp-image-16611 size-full lazyload\" data-src=\"https:\/\/www.sandler.com\/wp-content\/uploads\/2023\/04\/The-Sandler-Negotiation-Matrix.png\" alt=\"\" width=\"936\" height=\"476\" data-srcset=\"https:\/\/sandler.com\/wp-content\/uploads\/2023\/04\/The-Sandler-Negotiation-Matrix.png 936w, https:\/\/sandler.com\/wp-content\/uploads\/2023\/04\/The-Sandler-Negotiation-Matrix-300x153.png 300w, https:\/\/sandler.com\/wp-content\/uploads\/2023\/04\/The-Sandler-Negotiation-Matrix-768x391.png 768w\" data-sizes=\"(max-width: 936px) 100vw, 936px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 936px; --smush-placeholder-aspect-ratio: 936\/476;\" \/><\/p>\n<p>The value of this tool lies in how much easier it makes to follow the rule of never giving a concession without getting one in return. Most salespeople give and give\u2026 but get nothing in return except for (they hope) the word &#8220;Yes.&#8221; This tool helps salespeople strategize the concession discussion up-front\u2026 and gives them the flexibility they need, in real time, as they talk to a buyer.<\/p>\n<p>Believe me when I say that 2023 can be a great year. Our teams, our philosophy, and our attitude can be based on a shared belief in abundance, in possibility, and in a working culture of where growth, innovation, and a future-forward outlook are all interconnected. The way to make that happen is for leadership to set the example, through action, in ways that shape the belief system of the team in a constructive way\u2026 and for <em>everyone <\/em>to work together when it comes to protecting profits. For sales teams, the Negotiation Matrix is a great place to start. That\u2019s what I mean by focusing on <em>us!<\/em><\/p>\n<p><a href=\"https:\/\/sandler.uberflip.com\/i\/1493742-sandler-advisor-vol-23-issue-1\/0?\"><strong>To learn more, read the full issue of the Sandler Advisor, here.<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>As we lean into 2023, let\u2019s consider the possibility that what we need to focus on is what is most important\u2026us!<\/p>\n","protected":false},"author":18,"featured_media":16613,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","inline_featured_image":false,"footnotes":""},"categories":[1120],"tags":[1396,1033,1210],"class_list":["post-16610","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-business-management","tag-leadership","tag-negotiations"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The Sandler Perspective: What We All Need to Focus on in 2023 - 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