Leaving Money on the Table
A pivotal decision in my selling career was walking away from a $45K commission. Sounds nuts, right? This was the decision that changed the course of my client relationship. It was also the decision that paved the way for one of the largest software investments this specific client ever licensed, laying the foundation for transforming their operations.
My company was focused on automating this particular client ’s payables and receivables processes. If I closed the deal, it would expand my company’s license, and ultimately I’d collect a healthy $45K commission. I was over my goal for the year, and every new deal was paid at a significant accelerator.
New Information
It was the final presentation where a colleague and I were delivering the findings of our analysis. We’d spent several days over the past month at the client’s facility observing, gathering and discovering how they did their work today and listening to their ideas for improvement. Our presentation detailed the future state of their operations, estimated costs and the expected return on investment they could expect.
The client team was all in attendance including the VP of finance (the buyer), her staff and her boss, the CFO. My inside connections with the client’s company told us it was my deal to lose, meaning that I was essentially guaranteed to land this account. These reassurances that the deal is in the bag are always “Oh S..” moments where I’m thinking, “How am I going to screw this up and get outed because I missed a gimme putt…” Geez, self-doubt is maddening!
As we talked about the project, the CFO shared some significant new information that we didn’t uncover during our assessment work. Reflecting on the analysis of the client’s needs, I fault myself for not digging deep enough with my questions while exploring how to solve their problem.
Calculations
The new information changed everything. The reason was simple. Doing some quick math on the license and implementation services cost, I realized it didn’t make financial sense for the client to do this project at all. Keep in mind the customer was looking at the same numbers I was, but they were enamored with this solution that was resolving a festering sore spot in their operations. The atmosphere in the conference room was friendly and talkative. Some of the client’s staff were giddy about the prospect of finally solving this long-standing issue.
The Decision
Then, a dark cloud of bad news enveloped the room.
Well, it was actually what I said that caused the weather change. I explained why it didn’t make financial sense to go with my company’s solution. But I let them know I’d do some research and see what other solutions in the market might meet their needs. After a few questions, the meeting came to an awkward end, kind of like not letting someone blow out the candles on their birthday cake. We packed our bags, said our goodbyes and left the room.
Some context for why the deal didn’t make sense: The client’s investment would take over 10 years to get a positive return.
From Good to Bad to Kinda Good
On the way to the car, one of my insiders who was in the meeting ran out to talk with us. I’ll never forget the conversation. He said, “Our CFO can’t believe what you did in there.” My heart sank like Wile E. Coyote running off a cliff. A hailstorm of negative thoughts pounded my mind during the silence. My colleague, a close friend, turned quite pale from hearing the comment. His expression said, “Great, way to go, David. Now I’m going down on this sinking ship with you.”
Over the din of my mental hailstorm, I heard my inside contact say, “The CFO, in all of her career, has never seen a salesperson walk away from a sale.” I’m certain I didn’t hear the comment at first as I was still contemplating unemployment. More uncomfortable silence passed — I was in shock and didn’t have a clue what to say. So he spoke up again. “The CFO really appreciates your honesty and looks forward to getting your advice on what to do next.” After a clumsy handshake, we went our separate ways.
About a Year Later
A big deal that touched most of the employees in the organization closed a year later at the facility of the client that is the subject of this story. The project was sponsored and approved by the president of the company. She used to be the CFO.
Yep, that CFO.
It’s not companies we’re selling to, it’s people… and the decisions people make for our products or service can be tipping points for the direction of their careers. People buy from people, and doing the right thing for people is always the right choice.
The Unexpected Benefit
After walking away from the deal described in this article, people sought out my advice rather than questioning my motives. I discovered what being a trusted advisor really means. Even after moving to another company, I’ve stayed in contact with many of the friends I made at the client, including the president. These are some of the intangible benefits of being in sales.
