The thing AI can’t (and won’t) do
What AI can’t do from an art perspective, by Guillermo del Toro. Value: It’s not about the cost. It’s not about the effort. It’s about the risk. Just check this one out 👇 (less than a minute short)
Be the dumb one
Some say that asking too many questions is either dumb, or makes it feel like an interrogation to your customer. I’d choose the former. 🙂 Think of it this way. You could approach it as if you know nothing of the solution. You stop yourself from solution-mode. And ask to understand what’s the big thing behind what your customer wants —and why they’re talking with you. Play dumb, as in “What if I didn’t know anything? How could I learn more of their challenges, and possibly help them?” That…
It’s all about the keepers
There are 2 types of people in each customer (or prospect) that you reach: Budget keepers. Value keepers. You wanna talk to the value keepers. They’re the ones who see the future and are comfortable with uncertainty. They’re the ones who can fight for a high return in value.
When should you give discounts?
Do you give discounts? If so, how does that go?
5 rules on discounting
Giving discounts: taking a price off of something —or adding something up to your offering. But… what’s the reason (or reasons) to give a discount? Is it to give it when they ask for it? Is it to close the deal? Is it because you have no power in the negotiation? Is it because they have all the power in the negotiation? Is it because you can’t say No? Is it because they don’t have money? There can be a million reasons (or even more). And that’s fine. One thing you can ALWAYS say, and need…
Money is not a problem.
In a negotiation in behalf of a client, I asked my client: “Please give me the prices (at full) for these 2 programs your customer wants to buy. Money is not a problem. They have as a minimum 24K euros.” The answer? “Here. This is the price —but we can always offer it for less.” The “less” price? 16K The fear of “losing” the opportunity pushed them to go to a default state of discount, making them leave money on the table; despite having the extra approved budget. Fear… it’s not your best…
Going deep on discounts
If you’re going to discount, here’s a more detailed view of yesterday’s rules: Specific.Needs to explain WHY they’re getting the discount. In exchange for something in return.Needs to say what’s being given in return for the discount. Explicit.Needs to be stated in the proposal what, how and why the discount is there. Time-bounded. It has to be in a defined timeframe.Needs to be a take it now, or leave it. Written at the end of the quote/proposal for what it is “Discounted price”.Price →…
No is good
Knowing what to say no to is the thing that puts you (and your business) in the expert position. It gives you clarity to choose the right fits for you. It disengages you from incurring into sunk costs (that all-nighter proposal/quote, that long pitch deck, that overexcitement into this next deal). It lets you set and respect your boundaries. It gives you the freedom to walk away. And most of it all: it lets you be the expert.
You’ll be forced
“And remember: if you can’t differentiate yourself from your competitors, you’ll be forced to compete on price.”Jonathan Stark Just that. You can read Jonathan’s full post here.
Culture
A set of behaviors shared and understood by a group of people. Behaviors that are tolerated or reinforced. Whatever behavior you accept and tolerate (from your own team, customers, suppliers, competitors…) is the one that will define how you act —consciously, or unconsciously. Choose wisely.