Eubbsi: Elearning Catalogue 3 - Finance skills for Sales

Understanding cost structures and cost-drivers – LU 22
The cost of complex goods can be very high, and buyers can be very price sensitive. They would like to know the price of the goods and services they buy, the cost of implementation and all the cost related to usage. The salesman must be able to give the buyer correct information on these costs, has to demonstrate the effect of different decisions on total costs.
He has to understand both the buyer’s and his own company’s cost structure and cost drivers to make or to recommend decisions on prices of different product-service combinations. He must know how different costs behave, how they influence margins
Financial control of implementation projects – LU 25
Cost management is a weak point of many complex and long-term projects. These projects are expensive and (e.g. IT projects) are known for coming in way over budget.
He has to understand the project’s financial reporting system, represent the buyer’s interest in his company’s implementation team and make recommendations related to costs and budgets when necessary.
The salesman is typically not the person managing the implementation project but he is responsible for the general relationship with the client, consequently he must be an active player in project cost budgeting and cost control.
Evaluating the investment for the buyer and understanding its financial goals – LU 24
Buying an expensive and complex mix of goods and services must be considered as an investment decision. To get a good return on this investment is a natural expectation of the buyer. Buyers typically have multiple decision options including buying different versions, using different financing and paying solutions, invest the money somewhere else, or not buying anything.
The salesman must understand the buyer’s financial goals and constraints, how he measures financial success, how his key indicators are related to each other. He has to demonstrate the recommended investment financial value to the buyer, compare it with the value of alternative investments, must help and advise the buyer in making financial calculations and comparisons. He must be able to answer questions of expected financial benefits and risks.

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