“CloserQ, I have three big deals where I am VOC and all three are stalled due to frozen budgets. What is your advice to unstick these deals?” Tim Geitner
Tim, first I am excited to answer a sales question, it seems like all of my recent questions have been about finding or holding a job in this economy. I also like the name of Tim Geitner.
I have three recommendations:
· Break the Deal Up into Smaller Pieces: ‘Chunk’ your deal into smaller deals that are more budget friendly for your prospect. Work with your prospect to prioritize the phases of their project and then get their commitment to sign the first stage / deal now.
· Date Related Motivation: Dig deeper to see if your client has true date related motivation to purchase your solution now. Is a legacy system going away, did their senior management make a board level commitment, is your solution an opportunity to take advantage of the competition while the economy is down? I assume you have done this but I try not to ass_u_me.
· Refundable Guarantee / Risk Sharing: Can you offer a money back guarantee if your client’s budget isn’t approved and if the contract isn’t signed by a specific date. My first two recommendations you can do on your own, for this one you will need senior sales management approval for this type of deal. If you are a publicly traded company your CFO may have to also need to be involved too. This is what Hyundai did with their, you can return your car if you lose your job, promotion. Can you go at risk on your deliverables?
Commentary: There is a saying that I agree with, “Time Kills All Deals.” You can only be VOC (Vendor of Choice) for so long before the prospect will have to rebid; there is turnover; or they decide not to do the project. Plus, I can guarantee your competition is calling on your prospects.
I was recently involved with a sophisticated RFP, when I learned a competitor, that I know, signed a deal with them. I called the prospect to say there is no way they could successfully implement what is required in their RFP. The prospect agreed with me and said that is why they are only doing the initial phase with them. Our competitor successful changed the buying criteria and chunked the RFP to focus on the initial stage they could do. We are still in the larger deal but I have to give my competitor kudos for their successful sales strategy and setting themselves up for future phases.
‘Good Closing’. Reader Feedback, please click the comments below to give ‘Tim' additional recommendations and I want your feedback on my response. Shaun Priest aka CloserQ
Tim, first I am excited to answer a sales question, it seems like all of my recent questions have been about finding or holding a job in this economy. I also like the name of Tim Geitner.
I have three recommendations:
· Break the Deal Up into Smaller Pieces: ‘Chunk’ your deal into smaller deals that are more budget friendly for your prospect. Work with your prospect to prioritize the phases of their project and then get their commitment to sign the first stage / deal now.
· Date Related Motivation: Dig deeper to see if your client has true date related motivation to purchase your solution now. Is a legacy system going away, did their senior management make a board level commitment, is your solution an opportunity to take advantage of the competition while the economy is down? I assume you have done this but I try not to ass_u_me.
· Refundable Guarantee / Risk Sharing: Can you offer a money back guarantee if your client’s budget isn’t approved and if the contract isn’t signed by a specific date. My first two recommendations you can do on your own, for this one you will need senior sales management approval for this type of deal. If you are a publicly traded company your CFO may have to also need to be involved too. This is what Hyundai did with their, you can return your car if you lose your job, promotion. Can you go at risk on your deliverables?
Commentary: There is a saying that I agree with, “Time Kills All Deals.” You can only be VOC (Vendor of Choice) for so long before the prospect will have to rebid; there is turnover; or they decide not to do the project. Plus, I can guarantee your competition is calling on your prospects.
I was recently involved with a sophisticated RFP, when I learned a competitor, that I know, signed a deal with them. I called the prospect to say there is no way they could successfully implement what is required in their RFP. The prospect agreed with me and said that is why they are only doing the initial phase with them. Our competitor successful changed the buying criteria and chunked the RFP to focus on the initial stage they could do. We are still in the larger deal but I have to give my competitor kudos for their successful sales strategy and setting themselves up for future phases.
‘Good Closing’. Reader Feedback, please click the comments below to give ‘Tim' additional recommendations and I want your feedback on my response. Shaun Priest aka CloserQ
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