Top producers in the commercial equipment leasing and finance industry understand how their products are priced. They understand how their products compare with their competitors. They are able to explain the structures and pricing of their products. Unfortunately, there are some in the industry that believe "ignorance is bliss," and try to withhold pricing details from their originators. Without this knowledge, originators are unable to win their fair share of transactions. They become order takers, rather than true financial advisors.
I always include pricing exercises with my training and coaching engagements. I am surprised by the number of originators who lack full and complete pricing basics (both newer originators and veterans). They often lack:
Basic understanding of "time value" of money
The ability to fully use T-Value to calculate payments and yields
The ability to suggest pricing options to their vendors and end-users.
I strongly suggest that every originator be fully educated in every aspect of the financing and leasing process, especially in reference to how transactions are priced. I strongly suggest that every originator be proficient in using T-value software. I strongly suggest that originators have the ability to offer and explain different pricing and structures to their clients with confidence. Top originators fully understand their products and the products of their competitors.
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This "Sales Tip" is provided by Wheeler Business Consulting.
