Selling in a "Recession Threat" environment

When we are Value Sellers and not commodity sellers, we justify the value of our product or service and quantify the results, hopefully in a hard cost way.


Differing economic climates mean adjusting what we value.


I've had the opportunity to sell during many different periods including a few recessions.


I hope that others add to this in the comments, but here is my value list for recession threat:


  • Fear out-sells gain every time. Recession is about fear, I am a positive person, but you need to feed the fear in order to deliver a saving positive proposal to you customer
  • Value- "Since hiring is going to slow or freeze, your company has to do more with less"
  • "Software is tied to productivity, you need to prepare now with our product for the fewer headcount you will have tomorrow. Here is the savings ratio ..."
  • The recession plan is a C-Level initiative." My software needs to be part of that plan, here are the numbers why ..."
  • "We will provide you a creative payment plan to cover four years of productivity vs cost to help with the headcount issues. This needs to be in your plan."
  • "You do need to freeze spending, but not on items that go into your recession plan. We are part of the solution"
  • THIS IS THE TIME TO SELL HIGH IN THE ORG. It takes time for the new initiatives and edicts that freeze your sales to be be understood by the departmental buyers. The C-Level is making the plans and they only care about your $$ value to their plan. Sell to that.
  • Now is the time to adjust your selling, or come closing time you may be surprised.



Coach Craig

Recession talk has already slowed some of my sales pursuits

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NotCreativeEnough
Big Shot
5
Professional Day Ruiner
I try to only work for companies who's products are a "need to have" not a "nice to have". It helps keep things from slowing down during a recession. You still feel it. Customers will still try to be stingier and try to negotiate more, sale cycles might be longer. But it helps shelter you from taking too much of a beating.
CuriousFox
WR Officer
3
๐ŸฆŠ
Yes exactly this. I had zero issue telling someone their deal I got warchest on was going to need to be reworked if I didn't have signed docs by a certain day/time.
TennisandSales
Politicker
2
Head Of Sales
i have seen this first hand! sold a product that the company felt was a "need to have' but prospects all thought of it as a nice to have.

now I sell a product that truly is a need to have and there is no slow down in sight. absolute game changer.
NotCreativeEnough
Big Shot
0
Professional Day Ruiner
yep. Been there done that. Any sign of a bad economy and now your quarter is tanked. Worst case the company is either sold or layoffs start next. Never again.
EndTheFed
Valued Contributor
1
Sales Development Representative
How do we Define a Must-have Product to a nice to have ?
coachcraig
Contributor
0
Coach and mentor to Enterprise AEs
Many here have a whole bag of products as well. I just have had 40+ at oracle. I think this starts as a shift in how we talk about our product. Taking a day to define how and why we fit in the warchest before our next pitch can turn a product from nice-to-have to warchest worthy. Itโ€™s all in how you apply your features to must-have needs.
NotCreativeEnough
Big Shot
0
Professional Day Ruiner
A must have is something that is essential to the functioning of a business. For example I sell ransomware defense software. Not only that, no other company out there is able to do what we do so we have very limited competition (most I can say without giving away company/myself). Ransomware defense is a boardroom issue and an attack can cost a company 10's of millions. Having protection in place is not optional. Something like a new marketing platform (say something like postal.io) is very optional. And more often than not one of the first things to get cut if profits start taking a hit.

There's of course way more examples than just those out there. Those are just what I've got off the top of my head.
GDO
Politicker
2
BDM
Recession scaries is why I did not jump ship. My current company will profit from recession and my notice period is more than 3months
Gasty
Notable Contributor
2
War Room Community Manager
0 recession talks till now.
ZERO
Corpslovechild
Politicker
1
Inbound Sales Manager
Just wait......
ThatNewAE
Big Shot
0
Account Executive - Mid enterprise
Ask your AEs.
DungeonsNDemos
Big Shot
1
Rolling 20's all day
My company's product can help from a cost tracking/risk basis, so I do not see a recession hurting us for 3 reasons specific to our industry.
Like @NotCreativeEnoughsaid, it's smart to sell a product that is "need to have" and I might add, something that is at minimum, competitive and revolutionary to the space.
ThatNewAE
Big Shot
0
Account Executive - Mid enterprise
Oh yes. A lot of recession talks. Many deals of June got pushed because they want to see how stable they are / would be in recession first, and then commit.
FromaBlankPerspective
Politicker
0
District Manager
What we are seeing is a lot of "there is a recession coming so we don't want to disrupt anything," but once it actually "hits" we'll be in good shape because we're the established player. People will be looking for resiliency and we'll scoop up a lot of business from our smaller competitors that can't ride it out.
saleslacker
Good Citizen
0
SDR (Sales Development Rep)
One q I have: how to differ between need to have versus nice to have?
Corpslovechild
Politicker
0
Inbound Sales Manager
Change your pitch up to how your product solves XYZ that is costing the company ABC
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