20 Profit-Killing Business Tactics and How to Defend Against Them

(Part 1 of 4)

1. Being A Bully - When A Prospect “Knows” That You Need Their      Business.

Tactic:  Oftentimes, prospects will “bully” sales associates to make undo demands and favorite concessions and price cuts when they think the salesperson is desperate to close the deal (either because of a need to make quota or to make that big commission). Emotional outbursts, saying the price is outrageous, etc.. to goad the sales person to agree to additional services at lower fees.

Defense:  Stay unemotional. Remember the value-added that you (your company) puts into the sale. Your company should have a S.O.P. (standard operating procedure)for all objections in the sales cycle that you may encounter. Keep a full pipeline of prospects at all times so that one rejection will not keep you from monthly commissions.

Also, if you are bullied into a lesser value deal, your company will lose that profit and may be a detriment to future sales You are the professional, act like it..

 

2. The Time Waster- How to Spot Them, and Avoid Them

Tactic - They are everywhere. At after-hours business meetings, at work, at business meetings, at sales presentations. They refuse to discuss anything beyond the trivial, will not (or are unable to) commit. Always changing their minds and perceived needs.

Defense- Learn how to spot them: Do they ask how much your product or service costs?, Are they vague in their needs, Are they still waffling after your second sales meeting?, Do they continue to talk incessantly about unrelated personal matters?, Do they seem to have all day to talk with you?

Once you spot them, avoid them like the plague. Be direct and polite. Explain that you have enjoyed meeting with them, but, must move on. Remember that one of the most valuable commodities is your time.

 

3. Bad-Mouthing - If they bad-mouth your competition, they may bad-mouth you in the future.

Tactic – A prospect immediately starts telling you that they hate your competitors. Appearing to take you into ‘their confidence” that they “know” you are not like your competitors, thereby expecting the return favor by getting a “bigger better deal” from you.

Defense -  Acknowledge that you have competitors. However, explain the value that you are able to bring to the table. By keeping the focus on the end result (solving your prospect’s need), you will be less tempted to involve yourself in the back-biting. Stay professional.

If you participate in the ‘my competitors are bad’ be aware that you may get this deal closed, at the detriment of future sales and lost reputation as this client may bad-mouth you in the future while continuing to look for the “bigger better deal”.

 

4.  The Elephant in Your Pocket – One customer generates a large percentage of your sales.

Tactic - One customer gives you more and more business each month. Soon, making onerous requests that, if you obey them, causes you to lose the resources you need to service your other current customers.

Defense - At first glance, this scenario sounds like an ideal customer. However, a standard maxim is not to let one customer provide more than 30% of your sales. One basic reason for this is that if you have one big customer, you are essentially working for that company without all the safety nets of being an employee.

Also, when (not if) your elephant is captured by your competitor, you are left struggling to replace the huge sales revenue. Instead of going after the big elephant, concentrate most of your sales efforts on the smaller customers that not only will be easier to bag, but will also be (on a personal basis) more loyal for the long haul.

 

5. Give me the Lowest Bid – When a customer demands that you give him the lowest quote.

Tactic – A prospect tells you your competitors’ bids and demands that your bid comes in lower or you have no chance of getting his business.

Defense – Keep in mind the maxim that if someone is dishonest for you then they will be dishonest against you. Stay above the bidding war fray. Remember the reasons that your company has that great reputation. (hint: it is not your low price).

Establish yourself as the go to person for value-added, not lowest price – and your profits will soar.