Problem: Phil is a salesperson I coach and he told me about a quote he had done on a 5-axis CNC machine for a potential new customer. He swore during our coaching sessions it was a “sure deal.” I just got off the phone with Phil who informed me the deal went to a competitor. He had called to review what went wrong. “I don’t understand,” he stated, “I quoted exactly what they wanted.”
Problem: Lisa was angry. It had happened too many times. She recalled the old movie, “Network,” where the veteran news anchor said, “I’m mad as hell and I won’t take it anymore!”
After submitting yet another proposal, she determined that she was just one of several vendors who were being used to satisfy the prospect’s need to obtain competitive bids. They had already selected a vendor (often the incumbent), and Lisa’s numbers were just needed for comparison and leverage for a better deal with their current supplier.
Problem: Many distributers are frustrated because they have to participate in a competitive bidding process to obtain business. Winning is often based on having the lowest bid. More than in any other type of sale, the buyer is in total control of the process. All information is disseminated to the bidders at a common bid conference and individual meetings are rare. The seller has no advantage over his competitors and frequently is reduced to guessing what his company will need to win the bid. If there are six qualified distributers bidding, your chances are less than 20% of winning the bid. And if you’re the “lucky” one that is awarded the bid, chances are your margins won’t be as healthy as you’d like.
Problem: The deal was consummated and Troy had finally displaced his number one competitor at an important account. Having received a promise that the initial order would be sent the following week, he departed, congratulating himself on his good fortune and ability to land the tough ones. Then, several days later, he received a voice mail message from his new account. From the tone of his contact’s voice, he immediately knew something was wrong. Apologetically, the client told Troy that when the competitor found out that they had lost the business, they reacted with decisiveness and lowered the price significantly. The result was predictable. The initial order was cancelled and the incumbent retained the business. Having been blindsided, Troy was at a loss for what to do. His company was unwilling to match the new price and he “lost” the deal. To add insult to injury, his contact was too embarrassed to return his phone calls.