One of the hardest lessons to learn in sales is when to walk away from a deal. However, it’s important to realize that not all deals are good deals, and sometimes it’s in your best interest to walk away. Below are some examples when it might be better to move on to the next deal.
Your Organization Won’t Write it
We’ve all been there. When the internal sale is harder than getting the “yes” from the prospect. You might not realize it the first time, but you will start to notice a pattern. Some organizations just shy away from certain types of business. If that’s the case, then don’t waste your time by going after that business. Regardless if their MOD (experience modifier) is good, or if they’re primed for growth, or your best friends with the owner’s son. If you think pursuing an organization is going to take a lot of extra effort to get them through underwriting, then you’re time is probably better spent pursuing other business. There’s a lot out there. Go find it!
They’re Overly Price Sensitive
If one of the first things a prospect asks is “what is this going to cost?” then he’s giving you a clue that he’s probably not the right kind of buyer. Ideally, you want to partner with organizations that see the value in your technology enabled services. These clients will be with you for the long-haul, plus you’ll be able to charge them more because they understand the value that you bring to their organization. Conversely, if someone is only focused on price, you’ll probably end up having to discount your services (which leads to less commission), and they’ll leave your organization for the next provider that beats your price by 5%. You’ll always be caught in a race to the bottom, and that’s not a fun race to be in.
They Shop Every Year, But Haven’t Changed Providers in the Last 7 Years
We have all seen that prospect. They call you back every year around renewal, but have never pulled the trigger. Yes, sometimes it takes a couple of years to win a deal, but it’s up to you to determine how many times you’re willing to go back. For some it might be twice, others it might be three years. Just make sure you don’t get dragged into the game of providing a quote just so they can take it back to their current provider for a rate drop. If you walk into a prospect and ask how long they’ve been with their current provider and they reply back “several years,” make sure to ask why they took the meeting. Unless something has gone horribly wrong with their service, they’re most likely shopping around to leverage the quote in order to get a rate drop with their current provider.
It’s Been Three Weeks, But Still No Documents
You had an awesome meeting three weeks ago, but you still haven’t gotten all the documents that you need for your underwriting process. At first, the prospect assured you that they would send the documents “by the end of the week,” but here is the third Friday deadline and still no documents. Sound familiar? Do you continue to call and send email reminders? You might. Or you could send an email letting them know that you understand that they have a million things on their plate right now, and gathering the documents must not be a priority, and that’s okay.
Someone who continues to put off getting you the documents is going to be difficult to track down for a proposal, and even more difficult to track down for a decision. It’s in your best interest to walk away and look for business that is ready to move. If you’d like to help increase your conversion rates from first meeting to underwriting, see if incorporating demos into your sales process might be right for you. By demoing in-between discovery and proposal, you now have an additional reason to get in front of the prospect. The first few minutes of the demo can be used to gather any additional documents that are still needed.
At some point, every salesperson needs to become greedy with their time. A prospect often gives numerous clues that you aren’t a priority during the sales process. Whether it’s rescheduling the first appointment numerous times, asking price-focused questions during the discovery meeting, or dragging their feet on getting you underwriting documents, a prospect will let you know if they’re serious about looking at your solution. If you get the feeling that you aren’t a priority, it’s okay to walk away. It may seem counterintuitive, but you’ll end up closing more business the pickier you become with your prospects. Your time is valuable. Make sure to use it wisely and spend it going after the right business.