Discussing the situation, Saunders described the team's current plight as "sickening".
"We don't want to be in the bottom three. It's really sickening, a kick in the teeth," he is quoted as saying by the Express & Star.
"Hopefully reality hits home because I've been trying to drum it into the players since I got here - 'Don't think it can't happen to you'. I've been telling them if I was a supporter I'd be wanting to make sure they realise what the situation at the club is.
"I've got to put an end to it and get the mentality right. I've explained to them there are lots of consequences if we don't stay in this league and it would be a disaster for the club."
Next up for Wolves is a home match against league leaders Cardiff City on Sunday afternoon.