How much is sales training worth? £5,000 a day? Or £500 a day? Should there even be a day rate? What do you think?
What about sales recruitment? 30% of overall earnings? Or 20% of salary? Or should there be a flat fee?
Most people and most companies have an answer to these questions but what are they based on? A reasonable fee for a reasonable job? (And who says what’s reasonable?!). The best deal secured a few years ago? An accepted ‘norm’ for the market?
If you’re recruiting salespeople or booking sales training, then you work in sales. Yet, if you have answers to these questions, I suspect you’ve forgotten the basics of any cost assessment. Before any of us can analyse what something is worth, we need to know the value it offers. Not all training is the same. Not all recruitment firms offer the same quality of service. We all know that, yet we’re often stuck in the mindset of a ‘normal day rate for training’ and ‘normal % fee for recruitment’.
The next time you assess any company offering training or recruitment, ask first what the value is. Or the potential value at least. If, after a sales training programme, your sales team were to improve their performance by 50%, what would be the uplift to your revenues and profits? What about 25% improvement? Or 10%? If you could find better salespeople using less of your time, by how much could that lift your team’s sales performance (and your ability to sleep well at night?!)? 20%? 40%? More? What if you could do both recruitment and training better – how much would that increase your bottom line?
When you work out the value to your business or to you personally (it can be both), then (and only then) can you answer the question: What’s it worth?