The Advanced Selling Podcast: How to Talk Financial Impact with Kevin Koharki

Release Date: June 23, 2025

In this insightful episode of The Advanced Selling Podcast, hosts Bill Caskey and Bryan Neale engage in a compelling discussion with Kevin Koharki, a distinguished accounting professor from Purdue University. Kevin brings a unique perspective to B2B sales by bridging the gap between sales strategies and financial acumen, empowering sales professionals to effectively communicate the financial impact of their offerings to potential clients.

1. Introduction to the Episode

The episode kicks off with Brian Neal and Bill Caskey briefly discussing their active LinkedIn group and recent sessions. They set the stage for today's guest, emphasizing the importance of integrating financial discussions into the sales process to enhance decision-making for both salespeople and clients.

2. Guest Introduction: Kevin Koharki

[04:42] Kevin Koharki: “I appreciate you having me on, fellas. It’s my pleasure to be here.”

Kevin outlines his extensive background, highlighting his academic journey at Penn State, his tenure in investment banking with Morgan Stanley, and his transition to academia. With over 17 years as a full-time professor and a focus on training employees across various organizational levels, Kevin has carved out a niche in teaching sales teams how to articulate financial concepts effectively. His work has taken him globally, assisting companies in understanding and leveraging financial metrics to drive sales success.

3. Understanding the Financial Perspective in Sales

The conversation delves into the critical financial considerations that CEOs and CFOs evaluate when contemplating investments. Kevin emphasizes that sales professionals must address how their products or services can:

• Increase Revenue
• Decrease Costs
• Provide a Return on Investment (ROI)

[06:36] Kevin Koharki: “You need to think about these things when you're talking to your clients.”

This framework ensures that sales pitches resonate with the financial priorities of decision-makers, aligning the product's value with the company's profitability and cash flow objectives.

4. Simplifying Financial Concepts for Salespeople

Recognizing that most sales professionals lack formal accounting education, Kevin breaks down complex financial terms into digestible concepts:

• Gross Margin: The percentage of revenue remaining after subtracting the cost of goods sold.

  [08:18] Kevin Koharki: “If you think about building a Ford F150... then you're keeping 10 grand. So 10,000 over 30,000 is 33%.”

• Operating Margin: The percentage of revenue left after accounting for all operating expenses.

These simplified explanations enable salespeople to discuss financial metrics confidently without overwhelming their clients with jargon.

5. Total Cost of Ownership (TCO) and Its Importance

Kevin introduces the concept of Total Cost of Ownership (TCO), illustrating its significance in long-term purchasing decisions.

[10:49] Kevin Koharki: “The total cost is not when they purchase something per se, it's what is the total cost of ownership over the life of this product.”

Using a case study, he explains how considering the TCO helps clients understand the broader financial implications of their choices, including maintenance, downtime, and operational efficiency.

6. ROI vs. Payback Period

A nuanced discussion emerges around the difference between ROI and the Payback Period:

• ROI (Return on Investment): Measures the profitability relative to the investment.

• Payback Period: The time it takes to recoup the initial investment.

[17:39] Kevin Koharki: “If you're selling to the CEO or CFO, there are more advanced measures they want to look at. So payback is a very rudimentary way of looking at things.”

Kevin argues that while payback periods are useful for quick assessments, comprehensive ROI analysis provides a more accurate picture, especially for long-term investments like heavy machinery or software services.

7. Strategies to Engage Buyers in Financial Discussions

Bill and Brian explore how sales professionals can initiate and navigate financial conversations without alienating potential clients:

[20:10] Bill Caskey: “How do we open that conversation up so the buyer is a willing participant in it?”

Kevin suggests that building comfort through foundational knowledge is key. Salespeople should:

• Educate Themselves: Engage in short courses or training to grasp essential financial concepts.

• Tailor Conversations: Customize financial discussions to align with the client's industry and specific business challenges.

[13:19] Kevin Koharki: “None of this requires you to go get a PhD in accounting...it's really just a function of understanding the basic terminology and some simple calculations.”

These strategies position sales professionals as knowledgeable partners, enhancing trust and credibility with clients.

8. Kevin’s Services and How to Engage Him

For listeners interested in deepening their financial acumen in sales, Kevin offers tailored courses and consulting services:

[15:30] Kevin Koharki: “I formed CAE Consulting...I tailor my courses to the particular job function and the company or industry.”

He emphasizes the importance of industry-specific training to address unique financial metrics and performance indicators, ensuring relevance and practical application.

9. Conclusion and Final Thoughts

As the episode wraps up, Bill and Brian reiterate the value of integrating financial discussions into the sales process. They acknowledge Kevin's expertise and encourage listeners to reach out for further training and support.

[22:35] Kevin Koharki: “If you show them the right numbers and the right strategy...your position goes up very, very quickly.”

By leading these conversations proactively, sales professionals can differentiate themselves, foster stronger client relationships, and drive more informed, mutually beneficial business decisions.

Key Takeaways

• Integrate Financial Metrics: Sales pitches should address how products/services impact revenue, costs, and ROI.

• Simplify Financial Concepts: Break down complex terms like gross margin and operating margin into understandable language.

• Highlight Total Cost of Ownership: Emphasize the long-term financial implications of purchasing decisions.

• Move Beyond Payback Periods: Utilize comprehensive ROI analyses for a more accurate assessment of value.

• Tailor Financial Discussions: Customize financial dialogues to align with the client's industry and specific needs.

• Invest in Training: Equip sales teams with the necessary financial knowledge through targeted courses and consulting.

Notable Quotes

• Kevin Koharki [06:36]: “You need to think about these things when you're talking to your clients.”

• Kevin Koharki [08:18]: “If you think about building a Ford F150... then you're keeping 10 grand. So 10,000 over 30,000 is 33%.”

• Bill Caskey [10:49]: “What's the cost of not doing [the purchase]?”

• Kevin Koharki [13:19]: “None of this requires you to go get a PhD in accounting...it's really just a function of understanding the basic terminology and some simple calculations.”

• Kevin Koharki [22:13]: “If you show them the right numbers and the right strategy...your position goes up very, very quickly.”

Connect with Kevin Koharki

For those interested in enhancing their sales teams' financial communication skills, Kevin Koharki offers customized training and consulting services. Reach out via his website www.caecoach.org or connect on LinkedIn for more information.

By integrating financial literacy into sales strategies, this episode equips sales professionals with the tools to engage in meaningful, value-driven conversations, ultimately driving better business outcomes for themselves and their clients.