Monday, February 22, 2010

The Other Side of #5... How to Avoid Being Hung Up on by NOT Going Too Far With Price Too Early

In my last post I introduced the #5 Reason a Prospect Should Hang Up on a SalesPerson....  When They Give You A Price or Proposal and You Haven’t Even Really Talked To Them Yet.

While I didn't get any comments directly on the blog post, I did get some phone calls and direct emails from a few of my sales compadres.  They were concerned for me.  I heard things like, "Has this consulting thing taken you all the way to the other side?" or "George, Why the hell are you telling people to hang up on us?  Aren't you one of us?"  or "People hang up on me all the time.  What's your point?"  We sales people aren't known for our attention to detail  -  Some may have missed the post where this all began where I outlined why I'm doing this, and what we'll cover over time.  And I know how busy people are...

In any case, sales sisters and brethren, this one is for you...

Don't be that sales person - the one that throws price around up front or just emails out proposals after one telephone conversation - and NEVER send an unsolicited proposal.  And don't work for that vendor - the one that asks you to send out unsolicited proposals, or tells you to sell or lead on price. 

It's really simple folks.  You can't possibly prescribe a solution without some diagnosis.  If a prospect hasn't engaged with you to help you diagnose then don't waste your time or theirs with pricing or proposals.  The fact is that you are not only completely under-valuing your own time and your company's time - you are telling the prospective customer that you believe one size fits all and that they are not unique - that their perspective on their needs or their vision to a solution does not matter.  You are also just leaving that level of engagement to the competition that understands how to approach this market.  It takes work and some required time to build that kind of dialogue - if you can't or won't do it, well then save yourself some time and frustration and spend your time doing something else.

I'M TALKING ABOUT THE WORLD OF ENTERPRISE/COMPLEX SOLUTIONS HERE.   I do believe that some SMB products - single user software or low ticket service items - could and should use price as a qualifier on the very front end.  I've been in more than one environment selling across the small, mid and enterprise where we put price up front for the small, selectively by defined parameters for the mid, and never for the enterprise.  Sell and manage by segment and nuance of your niche. 

It's just as simple for you buyers of HR Technology and Services:  When they send the unsolicited proposal for anything worth more than $1,000 total or monthly, throw it out.  When they call you and lead with price for the same - hang up.

I'd love your comments or emails. 

Number 4 is coming up later this week.... Can you guess what it is? or have any input on what it should be?

Thursday, February 4, 2010

The Top 5 Times You Should Hang Up On A Sales Person

Okay, without further ado, I give you the first installment of The Top 5 Times You Should Hang Up On A Sales Person. I outlined why I’m doing this in my last post… I’m trying to do some good for sellers and buyers in the Human Capital space in my own way. I hope you all enjoy it and get something out of it.


#5: When They Give You A Price or Proposal and You Haven’t Even Really Talked To Them Yet.

Going down the path with a vendor or salesperson that takes this approach will lead you directly to disappointment after you buy. It is either a vendor that is en route to implementing something completely off the mark for you – or – a vendor grasping for straws and just doing anything to get someone to engage and buy. STAY AWAY from either of these – and don’t hang around long enough to figure out which one it is that is asking you to risk your career for a new low price.

Let me be clear - There are some products or services that should be sold and bought on price. These are software for one or two users, tools in the form of content used on a desktop or two, office supplies and other commodities. These are things that generally don’t have a lot of moving parts.

More complex solutions should not be marketed or sold on price. These are things like software high in complexity or for large groups or enterprise level solutions, products or services that are high touch or tailored (in our market they would be tied to things like compliance, enterprise class workflow, employment brand, or other complex company-unique issues).

In the world of complex or consultative solutions – when a sales person brings you a price on the first call, or even worse, sends you a proposal without a real understanding of your needs, HANG UP on them and don’t call them back. Using some of the examples above: How could someone understand the scope of what you really need to implement without engaging with you or your stakeholders? How could someone possibly understand how to advise you in terms of compliance or brand without ever talking to you or your stakeholders?

As buyers we’ve all been there… a proposal hits our desk but we don’t know why – we pick up the phone and the sales person starts telling us how they can help with a problem we’re not sure we have, and all for just tens of thousands of dollars. JUST HANG UP.

I’d love your feedback or perspective… from both buyers and sellers. Please share your comments here….