On our blog, we often discuss ways to close a deal and become a better salesperson or manager. Lessons offered to us by successful entrepreneurs or leaders. But, as Nelson Mandela once said: “I never lose, I either win or learn.”
A lost pitch feels like a defeat, but it is actually a unique opportunity to learn. Every experienced salesperson has ruined a deal at some point due to a clumsy move and has become wiser from it.
We've listed a few common mistakes that can ruin a deal.
The necessity is missing
The progression of the sales process often reveals the actual need on your prospect's part. Are they truly looking for a solution, and can you offer one? Or is your service package 'nice to have,' lacking the need?
One of the main factors in a deal falling through is the lack of necessity.
Make sure that at the beginning of the process you investigate how great the need is on the other side of the negotiating table, and especially how you can help your contact person strengthen their own position within the company.
If you, as a salesperson, can ensure that your contact person makes a good impression, the chance of success of the deal increases exponentially.
“We at WC Duck recommend WC Duck”
We often put a lot of time into a brilliant presentation full of great case studies and sales pitches. Most pitches start with a presentation of your company, the services provided, and the answer to the question of why the customer should choose your company in particular.
Only do this if specifically requested. A pitch in which you unsolicitedly reel off the book as to why people should choose you is a pitch you can consider lost.
No (budget) sponsor
Unfortunately, it happens all too often: your contact person at the prospect with whom you wish to close a deal holds a position in middle management.
If you find yourself in a situation where this is indeed the case, it is advisable to find out at an early stage whether there is sufficient support from senior management.
In other words: is there a (budget) sponsor for the project that your contact person wants to start?
One-way traffic
Unfortunately, many companies still view the customer-supplier relationship as one-way traffic. Often, whether driven by finance or procurement or not, rates are negotiated down to the last detail and strict conditions are imposed on suppliers.
Payment behavior is also often a tricky point. You might go along with these points simply because you really want the deal.
Understandable, but don't get carried away. You might be able to close the deal, which looks great on paper, but the chance of a collaboration that won't go smoothly is very real.
Companies that do not view their suppliers as full partners, and impose prices and conditions through one-way traffic, usually drain all the energy from your organization. You are better off investing that energy in customers who give you the right kind of energy!
One man army
Your contact person at your prospect is wildly enthusiastic. You have even already received approval for a pilot budget to prove the business case together. But it turns out that your contact person is a one-man army within the organization and has little to no support.
Projects you initiate receive no follow-up, and your contact person fails to adequately sell your quotes internally. Always be wary of processes where you deal with only one contact person who seems to make decisions fairly independently.
Assess at an early stage whether there is broad support.
Postponed price discussion
You really shouldn't discuss price. Quality simply costs money. Yes, of course you can offer discounts to give the customer that final push in the right direction, but we aren't fans of it ourselves.
In any case, make sure you don't wait until the end of the process to discuss the price. When everyone is full of energy and enthusiasm prevails, it is a huge letdown if price turns out to be a barrier.
We recommend sharing your pricing policy early in the process to avoid any ambiguity.
What do you notice about these points? Many of the points have a direct relationship with your contact person within the sales process.
In other words, the person across from you is crucial to the success of the deal. So ensure your research is thorough, otherwise you run the risk of a mismatch.
Are you sitting at the table with the right person? Does that person have a mandate? Is that person supported by the organization, and is the need great enough? These are all matters to investigate at an early stage.