With a full US and worldwide recession underway, salespeople will face many challenges in ’20. Recently, we have also seen falling prices at the pump. While this will likely be the #1 reason we will get out of our current recession, I certainly believe there will be drawbacks to falling fuel prices.
When we were hit with record gas and diesel prices in 2020, we saw numerous products spike in price. Basic food items such as milk and bread went up overnight. Most retail products jumped, also. Raw materials jumped up in price as well rather quickly – including steel and most building materials. What all of us learned from this is that in our present time, fuel is the engine that drives our economy. You might not like it, but it is certainly the truth. Think about it. Before oil became a widely used natural resource, most of the world lived in log cabins or huts accompanied with outhouses.
With fuel prices falling, the numerous competitors that exist in every industry will eventually lower prices in an attempt to gain market share and also because the present market conditions demand it. This will negate the price increases that were passed along in 2020 that propped up sales for many companies. With a full recession underway, some companies had also already been making “never seen before” deals to prop up sales before fuel started its downward trend in price. The combination of these issues will put a great deal of pressure on salespeople to make their sales quota for 2020 and be able to preserve the price they had been getting on their products or services in the second half of 2020.
Is there a way to combat and fight these issues? You bet there is. There is no time like the present to scrutinize your proposals to make sure they present a solid profit justified solution. If you can show that your solution will increase efficiency, productivity, and recover lost revenue – you will be able to preserve the price you have been getting. Don’t forget to add in the fact that more companies are willing to take a look at who they are doing business with during a down business cycle, either. If you can prepare for these challenges that will face all salespeople and companies this year, there is certainly no reason why you cannot have a successful 2020 sales year.