“This is what the client is demanding. They have
been saying this for months. I know we don’t usually do it this way, but if we
say ‘yes’ now we might get the deal closed and make our quarterly numbers.”
These are words of deal desperation. We’ve all
heard them. Some of you may have even said them. The last chance plea to
management to agree to some wild concession that will make the deal happen and
the world will be beautiful again.
But did you ever notice those words often come
from the same source? The same sales lead ends up in the same situation,
quarter after quarter, asking for a big concession to get the deal done?
It’s like the golfer who is standing in the woods,
lying 3 on a par 4. He says to himself, “I have to hole it from here to make
par.” Never mind that he has to hit between three trees, over a trap and roll
uphill to the flag. He’s swinging for the hole instead of just trying to set up
his next shot, which he will undoubtedly have to take.
And when he misses, he is frustrated that he’s
still in the woods and blames everyone and everything without answering the
real question: Why are you in the woods? How did you end up in a situation
where you need to be successful on one desperate shot to make your number? Did
you make a plan for the hole? Or just take out a driver and swing as hard as
you could?
In sales, it’s called a “closing plan.” The best
sales people make a strategic plan for getting the client from proposal to
signature. Understanding buyer values/business requirements, building trusted
relationships, generating options and setting expectations as to what is
possible and what is not.
A client who wants a fixed fee or
“not-to-exceed” price, for example, needs to know that such a price is possible
provided the scope of work is defined and fixed. Allowing clients to change
scope and not telling them immediately that every change can impact price is a
fast path into the woods. You’ll be talking to your management about doing 20%
more work for the same price and begging for a concession to get the deal done.
Maybe you’ll get lucky one time; but without a change in behavior and better
planning, your partners will soon find another player who doesn’t make the game
seem so painful and frustrating.
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