I agree with
@maxtorz
The sale process is not a volley ball match - tossing prices back and forth.
You should be
qualifying the prospect, not prematurely tossing price grenades.
1) For
each individual you connect with, you should focus on a sound
Qualifying Process. Early in the process find out if this is a "decision by committee" situation and what their personal role is in the buying process? (in other words, has a budget been approved and are they a DM - Decision Maker). Everyone in a corp likes to think they are important and will tell you they are super big, but do they have sign off authority supported with a budget?
2) NATM -
Need /
Authority /
Timeframe /
Money. This is the basics of a corporate sale.
3) Have you identified their
need? Them simply tossing offers is not need, that is entertainment. I am saying DO THEY HAVE A NEED? And why do they need it now. What is the hot button for why the need it? I didn't say want. Needs and wants - 2 different emotions. Keep in mind, people buy emotionally and justify intellectually.
4) Qualify the candidate to see if they have the
authority to make the purchase?
Title is not authority. Signing and spending authority is what I suggest to clarify.
5) What is their
time frame for closing the deal? And with that, why the urgency today? For example, I have seen time and again where managers will spend their remaining budget in December. Why? Because many times next year's budget is based on a %increase of last years and managers will spend quick before losing the funds post-December. This is only one example of why they have a "need", but what is theirs?
6) And the most important issue - do they have the
money or budget allocated? It's all talk until it's time for them to cut a check. A great way to smell this out is to ask
"Is this a capital expense or an operating expense"? If you don't know the difference between a capital budget and an operating budget (and why it's important) you should get someone to help you negotiate this deal, because I guarantee a manager spending $20,000+ will know the difference!! AND IT IS IMPORTANT. Most import, by asking the capital vs operating expense question, you tip toe into the real qualifying topic (are they big hat / little ranch or do they actually have money or budget funds to spend). And if it's a capital expense, you better get ready for the
"oh now I have to go to the CFO to get his/her sign off" response.
Keep in mind - and too is CRITICAL - for corporate entities they typically have
spending limit guidelines in place that are established by either the Board/CEO/President/CFO (or maybe Controller). What I mean by this is most managers are authorized to spend $500 for example without CFO (or Controller) approval, most VP's are setup with a $5,000 pre-approved spending limit, most C-level individuals with a $10K-$25K spending limit... any amount beyond that typically goes to a CFO / CEO / BOARD review and sign off before the funds are approved for payment. If you didn't know that, then you'll find out at the 11th hour that your deal could be 60 days before getting payment (if approved at all).
You may "think" you have a deal at $20K, but do you KNOW if the person you are dancing with actually has the authorization (or budget) to get the check cut from the Finance Dept?
You mentioned you are dealing with a large company. Post here the N.A.T.M. information that your contact provided and I'm sure that will help us.... to help you.
I hope the landscape overview is helpful...
-Jim
ps: I am hopeful you close the deal, just want you to win the battle knowing where some of the land mines might be. And avoiding some common pitfalls.
