Say YES and there will be NO profit.
This is the reality that more and more companies are facing.
This is because the cost of a YES has increased. It’s because a YES will result in a customized, non-standard adaptation of an existing product.
The global market has really put pressure on the manufacturing industry.
It’s very difficult do profitable business nowadays. It’s difficult because you compete with countries with high competence and low cost of labor.
So when the customer asks for that special solution you have two options:
You say NO and you will make a profit.
You say YES and you will actually lose money.
Describing it this way makes the decision very easy. But, in reality there are other things that come into play.
Conflict: You don’t really want to tell the customer that you don’t support those special requirements.
Lost opportunities: You think you will actually lose that deal if you cannot fulfill those special requirements.
Burning bridges: You think you will truly lose the customer forever if you cannot deliver according to those special requirements.
All these fears are valid.
It’s always difficult to handle a conflict, but the truth is that this is the way to build bridges and secure long term opportunities. Your customer will actually appreciate a NO when there are valid alternatives and reasonable objections.
Let’s be frank, there is always a risk of losing some business. But, if these business costs more than it’s actually bringing in I think everyone will agree that we should stay focused on profit.
The secret to saying NO is saying YES to something else. In most cases there are good alternatives hiding somewhere in your product portfolio.
To get this message across to your sales force is really not that difficult.
All you need is a magic wand with super natural power to transform your NO to a customer’s YES.
Your only challenge lies in tracking down that magic wand.
First you must accept your destiny. And then you will need to…
…get a little adventurous.
…face your fears.
…defeat your antagonists.
But rest assure, we will be there to support.
We will help you find that wand, the magic wand our customers call Guided selling.
To a modern configurator this is not a challenge, this is our everyday business.
And you know what?
It’s actually no magic at all.Subscribe to CPQ blog posts