HP High Flyers Video Blog #5 – Top 5 Reasons Why You Lose

HP High Flyers Video Blog #5 – Top 5 Reasons Why You Lose


[Music] hi everyone and welcome back to the HP High Flyers vlog for this period of time now today we’re going to be talking about the top 5 reasons why you actually might lose a deal not a particularly pleasant subject I’m sure but this is based on research of looking at a lot of different pitches, different proposals over many many years and what I’ve seen as to why the end of the day people tend to lose out. Now we’re not talking about the low end here we’re talking about a significant deal and we’re not talking about price because surprisingly price is not the main determinant as to why you might lose a particular deal to a competitor so here are the top five Number one is something we talked about in our high flyers program which is not getting to the right level early in the process and as you know already and you heard from the customer panel, if you start going in at too low a level at operations or junior IT level and then try to escalate your way up to the top you’ve missed the chance to set the tone, the benchmark and understand their business requirements from an early time in the schedule, in the sales cycle and so by the time you get there you’ve actually lost your impetus and lost your momentum with the bid and then you open yourself up to competitors who have been at the top for that period of time. So as much as possible keep trying to get those appointments with MD’s, CIOs senior IT people, CFOs and the like, the difference it makes to your chances of winning are huge. The second reason that I see people aren’t as successful in bids or might lose a bid is simply because they’re still talking product instead of business outcome. So we all know we we get comfortable, we build rapport with people and what happens over time we start talking widgets and WJA this and XP 42 that and so on and we start getting down and dirty into the detail and that unfortunately can lead to things like just comparing one picture against the other and you start becoming me too or same as in the eyes of the customer when you get too down and dirty into that level of details, so business outcomes, productivity, improving customer service, improving their chances of growing revenue, improving their chances of saving money in their business that are the ways that are really tangible, not just just thought of on the spot so talk business outcomes not product as much as possible. All the rest of it will fold out from there because I’ve seen many a bid derail because it gets to techy too early on the sales cycle. The third major reason is poor negotiation skills. On a previous blog we talked about negotiation and we talked about concession trading – the one key thing I see that still goes on in this industry surprisingly compared to what we do in our day to day lives is we don’t leave enough room enough wiggle room to be able to negotiate. Sometimes people get scared if they give a price early on in the sales cycle what will happen is that the client will get scared off if it’s too high or maybe the client will want to negotiate there and then so we start looking for middle ground or we start looking for discounted proposals. Earlier in the sales cycle what happens at the end is the client comes back to you after you’ve won them over and says I’m happy to go now but I need you to take another 15% off. Well you can’t always go back in and get that kind of discount you end up destroying your margin if you want to win the bid or you can’t go anywhere so they go somewhere else who can give them a much better deal so always allow yourself some wiggle room not just on price but on term, on installation on when you do the audit whatever it is that you are proposing a allow yourself some wiggle room, we do it in our day to day lives with real estate when we’re buying a house or selling your house we’re doing it when we’re buying or selling a car, we need to do the same thing when we’re looking at MPS and similar services.The next reason is looking at talking about the tender process itself and the pitch and proposal what do you do before the tender what do you do after the tender Now in some of our coaching sessions, I’ve spoken with a few of you about what to do right in the middle of this kind of tender my key advice to you to avoid losing is keep pitching. What I mean by that is keep talking to the client all the way through, putting probity aside when you’re there and you’re putting your tender in put forward an alternative proposal put forward other suggestions, send white papers after you’ve proposed your offer to them say that you want to catch up with them again for another meeting during that evaluation process as long as you’ve got something new to share with them. Ask your manager to send a letter confirming that he or she understands what the bid is and confirming their commitment to that client, the more that you show your interest without pushing them, the mistake people make is they ring up and say hi how are you going with the tender, how are you going with the proposal, that’s not effective for anyone, what we need to provide is a very good reason for contacting them and then keep pitching with these ideas like white papers and letters and and phone calls with a purpose to get them engaged and show that you’re committed to doing that The final one I want to share with you today is probably one of my favorites and that is Use all of your resources there are still maverick sales people out there that are so focused on doing it all themselves – this is my deal and my client I’m gonna win it and stick a flag in it and make sure it’s cooked and I can claim all the glory. The truth is that some of you have got, you know, half a million, a million two million dollar deals on the table and those deals are not always won just with one person and a pre-sales person you might need HP to come in with you, you might need your senior management to be involved early not just at the end at the negotiation phase. Use all your resources, use any experts you can find, bring your own CFO into the meeting if you want to to discuss the ROI and to discuss the financial benefits of your proposal The people that I see who are using all of their resources not just their own sales knowledge tend to have a much better chance of succeeding especially in a highly competitive bid in a high-stakes environment. So there you go top five reasons for why deals are often lost – if you can avoid those you’re well on the way to winning. See you next time

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