How Great Salesmanship Will Help You Fight The Falling Pound.
The Pound Plummeted Below $1.20 in 35-month Low on Tuesday. Don't Let Your Margin Go The Same Way.
The pound’s historic new low of $1.1965 was seen amidst Brexit talks in the House of Commons on the 3rd September and last night's events have cast even more uncertainty over how and when the UK will leave the EU.
It’s no secret that sterling has markedly depreciated since plans for Brexit were announced, as currencies don’t like uncertainty, but September 3rd saw the pound at its lowest against the dollar since 1985, apart from the flash crash in 2016.
The falling value of the pound suggests that traders are feeling increasingly unsure about the impact of Brexit on trade and perhaps highlights that, at least in the short-term, positive outcomes might be unlikely for trading. With different views on when and how we will leave, and the proposed general election mid October, there are no guarantees for the state of the currency over the coming months.
What could happen if the UK leaves the EU with no deal?
If the UK does leave the European Union with no deal, as the PM is pushing for, then the UK will automatically fall back on World Trade Organisation (WTO) rules. These rules essentially mean that tariffs will apply on imports and UK businesses will need to plan for the chance of maximum charge if we do leave without a trade deal. The Confederation of British Industry (CBI) has projected that if we leave with no trade deal agreed then 90% of the UK’s goods exports to the EU by value would face these tariffs.
So, if the UK fails to maintain free trade with the EU (and with all the 67 countries with which the EU trade), tariffs would apply on most goods coming into the UK. Not to mention the increased time, paper work and cost on import which clearly poses new difficulties for businesses operating within the UK.
So, what impact could the fall of the pound and a no-deal Brexit have on manufacturing?
Limited Talent Pools
Changes to UK immigration and border controls may limit talent pools for UK companies. No longer having free access to European talent could make it harder to tap into a diverse staff pool; this makes it even more important than ever for business to invest in their current staff to upskill them and get them ready for the potential uncertainties facing businesses across the UK over the coming months.
The devaluation of the pound ultimately leads to higher input costs and inflation; every-day essentials or impulse buys start to feel more like unnecessary luxuries. As the pound weakens, the price of imported components rises and not all of the additional costs can simply be passed on to the consumer. This is hugely problematic and companies will have to be able to sell value much more effectively in the new climate.
A reduction in consumption due to economic uncertainty could lead to reduced revenue for manufacturers. Also, potential increased tariffs and complications around supply chains could impact on costs and drive up operating costs. Having sales people in your business who can confidently and effectively sell your value proposition is now more important than ever before.
What could the potential benefits be?
According to Official UK figures, 44% of all UK exports went to the EU in 2017, while 53% of all UK imports came from the EU – in short, EU countries do sell more to the UK than the other way around. It’s clear that a good deal on trade is equally important for the EU, however, it may take a long time to get this right which could trigger longer waiting times at borders and complications in the meantime.
Experts suggest that a hard-Brexit could slow down business with the EU, at least in the short term. However, despite the uncertainties this creates for UK business, it does open up the opportunity to do more business with the rest of the world.
To tap into global sales and make more of these new revenue opportunities, you need a strong sales staff that are ready to drive new business and secure new overseas relationships with your prospective clients.
Why is investing in training your sales staff so essential?
Manufacturers should look to their systems and efficiencies to ensure they are maximising sales opportunities – expert salespeople are essential for driving revenue and now is the time to invest in training your sales staff so they are ready to take on whatever is thrown at them.
At Pareto, we have been leading the market in sales training for over two decades. We have a robust range of courses that will upskill your salespeople to enable them to drive profits forward in times of uncertainty. This September we have a limited time special discount across all modular training courses and we are giving any business who sign up this month 20% off.
We’ve been successfully delivering this sales course to clients across the UK to help them prepare their teams. Enrol today and get your staff ready to
- Coach your client from a fixed position to being open to change
- Build the value of your proposition through ‘story telling’ and proof statements
- Explain the Commitment Matrix to drive sales pipeline and commitment
Pitching has always been an essential skill in any sell, and pitching your product or service to clients when finances are tight is going to be tough. This course will enable your staff to
- Be confident handling questions and interruptions
- Increase conversions and revenue through the successful delivery of consistently impactful presentations
Effective negotiation skills will be invaluable in building a strong value proposition for your clients as the pound declines. This training course teaches sales staff to
- Repackage a value proposal during a negotiation to best fit your client’s desires
- Relay a cost Vs. saving message to persuade your client to accept the proposed solution at listed price
- Close a negotiation using ROI based conclusions
- Prevent margin erosion through combating buyer’s tactics
Once the UK is no longer part of the EU, businesses on both sides of the border will need to find ways of working efficiently together within each other’s regulations. If we leave with no deal, whether this is after a general election or in January, it’s unlikely to happen immediately. Manufacturing businesses need to be ready for any outcome to prepare to deal with disruption as smoothly as possible and equip their sales teams with the skills they need for success.
Future-proof Your Sales Team Ahead of Brexit with 20% off Training Courses With Pareto for a Limited Time Only.