One Sales Process. Two Different Conversations.

I’m writing this on a near-perfect Saturday night on my back patio. If I had my druthers, there’d be a tiny breeze to keep the bugs away, but otherwise, I’m very happy with a blue sky hazing toward pink and 76 degrees. The remnants of a bottle of Wild Turkey 8-year aren’t hurting, and I’m reminding myself (as I do every few years) that I need to listen to Rage Against The Machine more often. 30-odd years later, it still holds up.

One Sales Process. Two Different Conversations?

I was on a client call recently, helping to coach a deal with a leader and the rep. The current contract is expiring, and it’s time for new pricing. For context, the customer’s not going anywhere.

The manager asked a killer set of questions that set the tone:

Manager: “What do you think the customer wants in this new deal?”
Rep: “They’re looking to save every dime they can right now.”

Manager: “What do you want in this deal?”
Rep: “I want to execute the plan I created to provide more value so we can hold their price where it is and even escalate it over time.”

Do you see it? I noticed it right away.

Two people in a deal, neither of them is really interested (or able) to walk away, but they’re not talking about the same things.

Customer: “I need a price break.”
Rep: “We’re throwing in all of this other stuff. Look how valuable it is.”
Customer: “But I didn’t ask for any of it! Valuable to whom?”

The Trap

Situations like this carry with them a high likelihood that one (or both!) parties will be dissatisfied with the outcome. Price negotiations are just arbitration. Someone wins, someone loses, and nobody’s really happy.

You win the argument while losing a customer. Or you keep the customer happy, apologize to your manager, and try to make up that revenue somewhere else, all while staring a bunch of similar situations in the face with other customers. All of a sudden, your territory is a minefield, and yes, your customers talk to each other.

Story Time

I was faced with a similar situation years ago when I was in the field. We were raising prices across the company, and my biggest customer (one of the biggest in the company) was not interested in hearing that. They didn’t want to leave, but they had options. We both knew it, and their own data showed we were commanding a 15% premium over our competitors.

So I went to work. I crunched the numbers. I found ways they could reduce their cost if that was their biggest issue. We had a few SKU’s where we needed to turn some inventory, and it was beneficial to us to move it, even at a lower fee.

Me: “I can get your cost down. All I need is for the surgeons to be a little more agnostic about the SKU and the specs. Everything we have is more than enough to exceed clinical expectations, and they can put any one of these implants in me. The package would just look a little different.”
My Customer: “I appreciate that. Go talk to them…”

I did. Most were not interested in switching outside of a few products. I held firm where I had to, but also showed the hospital that I was willing to be as flexible as they were. In the end, it wasn’t about pricing so much as it was about making sure they were getting the best possible price for what they were already getting. They valued the quality of our product and my level of service.

After this situation, it felt more like a partnership than ever before. Not just because we had decided what mutually beneficial pricing was, but because we were able to uncover the real issue. It wasn’t pricing vs quality and value. It was about another thing altogether. We solved that problem together instead of it being “us against them.”

A couple of years later, I had to tell them I was leaving the company to start this business. The first thing I heard from the lead assistant in the department was a gasp and “What are we gonna do without you?” It both made me proud and broke my heart at the same time.

Just a couple of years ago, I got a text message out of the blue. “I’m getting ready to retire, and I’m going through my phone and saw your number.”

You knew I was gonna save that one…

More Often Than You Think

That call with my client made me think. I know I’ve been in this situation way more than I previously realized, and I promise they didn’t all end as well as the story I just shared.

How often are you and your customer having separate conversations about their purchase? What happens when you can both mutually agree to align around the importance of actually solving the problem you're there to solve, and then agree to a fair price for both of you because that partnership matters?

It’s almost never actually about spending less. It’s about understanding the real issues at hand, and tackling them as partners, not adversaries.

This Week

I actually recorded the story above in a little experiment that I posted to YouTube. I took it as an opportunity to start a new video series while also brainstorming this week’s piece. It’s unlisted, and I’m only sharing the link here. Let me know what you think. Is this a series I should run with?

I was also a guest on not one, but two podcasts this week.

I joined my good friend and OG LinkedInfluencer Brynne Tillman on the Making Sales Social podcast. I always enjoy spending time with her, and this episode was no different. Apple | Spotify

I was also on the Sales Gravy podcast with Jeb Blount Jr. JBJ is another one of my favorite hangs. Great interviewers ask questions that push the conversation forward, and I love the way he led this discussion. YouTube | Apple | Spotify

The Shoutout

My #ThankfulThursday post this week was about the one and only Victor Antonio.

You won’t find anybody more articulate in how he explains concepts. He’s brilliant (an engineer by trade), and you can see the gears turning in his head as he speaks.

He’s also on the shortest of lists there are of people with so much charisma and stage presence you wish you could bottle it up and sell it.

In short, when he speaks, it’s in your best interest to listen.

I’m not kidding that when I see clips of him speaking, I forward them to my wife and kids and say, “I know this guy!”

I’m grateful that people like Victor pick up the phone when I call. His advice has been invaluable to me.

Make it a great week, and make sure you and your customers are having the same conversations.

Cheers,
JB