Trade Credit Insurance Can Give B2B Sales Teams a Competitive Sales Advantage - Take that Hairy Deal!
Dan eats what he kills.
He's a B2B salesperson who has to prospect and network relentlessly.
So I always appreciate our conversations because it's helpful to hear how he creates new opportunities.
But I learn more from Dan, because he consistently brings creative ideas around using trade credit insurance to create a competitive advantage.
In today's markets with financial turmoil, risk-averse executives, and aggressive competitors, competitive sales advantage is critically important, and trade credit insurance is a timely topic.
In our conversation, Dan discusses the competitive advantage that companies can seize by taking deals they might otherwise find too problematic, and that competitors might simply refuse to take.
Dan also covers how the same coverage that helps sales teams confidently sell hairy deals, can help to extend generous payment terms as another form of industrial sales differentiation. He also covers some of the financial benefits, including reducing borrowing cost, increasing the asset base against which companies can borrow, and more.
Connect with Dan for information on how trade credit insurance can give your team a competitive sales advantage and give you peace of mind.
Check out Dan's Trade Smart Insurance website |
Using Trade Credit Insurance to Beat Competitors and Improve Financials - Dan Schobel on Industrial Growth Institute Episode 55
Episode Recap
Summary
Dan Schobel joins the Industrial Growth Institute podcast to chat with host Ed Marsh about the often-overlooked topic of trade credit insurance. They explore how this financial tool can mitigate risks for industrial manufacturers while also creating opportunities for increased sales flexibility.
Dan shares his journey in the industry, the challenges of launching his own business, and insights into effective sales strategies. The conversation also delves into:
- the current economic landscape and its implications for businesses
- rising bankruptcy rates
- the importance of understanding customer risks in business.
They delve into the role of credit insurance as a tool for managing financial risks, providing competitive advantages, and improving cash flow. The discussion also addresses common misconceptions about trade credit insurance and emphasizes the necessity for businesses to consider this coverage to safeguard their receivables and support growth.
Dan finished with an admonition to "Just sell the deal!" Imagine having that confidence.
Takeaways
- Trade credit insurance mitigates risk and creates opportunities.
- Dan Schobel launched his business to seize the moment.
- Sales in the B2B space require constant prospecting.
- Understanding customer risk is crucial for receivables protection.
- Trade credit insurance is not the same as factoring.
- The cost of trade credit insurance is minimal compared to its benefits.
- Threatening to file a claim can prompt customer payments.
- Retail is struggling while restaurants are busy.
- Economic conditions vary significantly by industry.
- Effective sales strategies involve understanding the decision-makers.
- Economic disparities exist between urban and rural areas.
- Bankruptcy rates are increasing, particularly in mid-America.
- Understanding customer risks is crucial for businesses.
- Credit insurance can provide a competitive edge in sales.
- Managing stress is part of navigating high-stakes situations.
- Credit insurance can free up cash and reduce financing costs.
- Many companies are unaware of the benefits of credit insurance.
- Misconceptions about the cost of credit insurance persist.
- Effective risk management can lead to business growth.
- Building relationships and trust is key in the insurance industry.
Takeaway Quote from Dan Schobel
- "You're crazy if you don't cover it."
Outline
00:00 Introduction to Trade Credit Insurance
02:25 Dan's Journey and Business Launch
04:25 Understanding Sales Dynamics
12:14 Defining Trade Credit Insurance
18:54 Cost and Coverage of Trade Credit Insurance
24:22 Current Economic Landscape and Its Impact
25:41 Economic Disparities and Bankruptcy Trends
30:00 Understanding Customer Risks in Business
31:52 Managing Stress in High-Stakes Situations
34:39 The Importance of Credit Insurance
37:48 Leveraging Credit Insurance for Competitive Advantage
40:34 Cash Flow and Financing Benefits of Credit Insurance
42:01 Navigating Misconceptions About Trade Credit Insurance
49:33 The Case for Trade Credit Insurance in Business Growth
Find Multiple Sources of Competitive Sales Advantage
With sentiment at a multi-year low, sales teams will need every advantage they can create in order to grow revenue, profitably.
Dan offers helpful insights into how trade credit insurance can help.
Companies can create more by bringing the same process engineering and continuous improvement techniques that improve manufacturing and operations, and applying them to sales and marketing. That's the premise of the Overall Revenue Effectiveness™ Framework.
