Lose Early

I had a bank client for many years and of all the things I taught, this was the CEO’s favorite: Lose early.

What does it mean? It means that as soon as it’s obvious you’re not going to win, get out. Politely and deliberately bow out. Don’t work the deal any longer. Go invest your time elsewhere.

The prospect is under no obligation to select you as their vendor and you’re under no obligation to ride out every deal until the end. That’s the unwritten contract we have with each other.

But bowing out is tough for us in the sales profession. We’re paid to win and we believe in our abilities to close opportunities. So, we sometimes lose perspective on our odds of winning.

When to Lose Early

As Kenny Rogers sang, “You’ve got to know when to fold ‘em.” Here are 5 situations when losing early is the smart strategy:

(1.) You’re weak in their biggest want – When the client’s primary driver in looking is in an area that you’re much weaker than your competitor, that’s a good reason to bow-out early. Yes you should see if there’s a hidden need where you are strong to balance out the decision criteria scorecard, but barring that, it’s time to go. If that primary driver stays #1 until the end, you’ll lose. They’re too emotionally invested. Let them know that if their business direction changes you’re happy to reengage.

(2.) RFP wired for your opponent – When you receive an unexpected RFP that reads like it was written by your competitor or a very biased consultant the client hired, be prepared to lose early. Reach out to the main contact to get your qualification questions answered, but if denied, walk. They’re doing due diligence but the decision’s been made. As part of your bowing out email, politely let them know what you’re really good at, your differentiated value, so they know what they’re missing. And, that you’re open to talk if anything changes.

(3.) Can’t find pain where you have differentiation – It really tough to bow out when you uncover pain you can solve but none of it where you have a differentiated solution. In other words, your competitor’s solution will work for them basically as well as yours. It’s tougher because you can win these deals. The odds are probably even. The problem is they’re often not very profitable. You either use tons of resources to win the deal or to support them after and/or you sell at a discount. No differentiation = low margins. But, you’re not losing right off the bat like with a rigged RFP. You’re engaged for quite a few steps. When do you bow out? When they make price the primary decision criterion and won’t budge off that

(4.) No access to key players – When you’re not allowed access to key players involved in the decision your chances of winning are slim to none. The reasoning for the denial may sound valid so your reasoning for access has to be even better. And, you have to express it to them in a way where they don’t lose face by backing down. It’s a mini-negotiation where you’re trying to collaborate on a solution that satisfies both parties. But, if they keep it competitive, if they remain dug in on their position, it’s time to bow out. Do so politely in an email with your reasoning.

(5.) No coach – Again, it’s hard to walk away when everything else seems good – needs, wants, access to people – it’s all there. But if it’s a complex, competitive deal and you don’t have someone giving you inside information, the chances of you winning are also slim. There are just too many moving pieces going on behind the scenes. If you’ve met multiple people and you’re good at building coaches, then not having one after several calls is a big red flag. Time to disengage.

This list is brutal, I know. You may disagree with some or all of them. Before writing them off, first try looking at them from a distance, like they’re someone else’s deals. If they now make more sense to you, the next step is discipline. And a good pipeline! When you have a good pipeline, following these rules is so much easier.

One Exception

Is there an exception to these guidelines? Yes, when you’re learning. If you’re new to selling or new to selling this product/service, then staying in the deal, even when there’s little to no chance of winning, makes sense. Gaining experience working the full process may be the best use of your time. But know that’s the reason you’re engaged. You don’t want pursuing every deal becoming a habit. You don’t want this thinking to become standard operating procedure.

What’s worse than losing early? Losing late. Finishing second. Thinking you just missed out. Instead take that time saved to build assurances on deals you’re meant to win.

Until next time...

This week's announcements 

1. If you’d like help with any of these “lose early” situations, let me know: [email protected]

2. I’ve put up a page outlining my upcoming “Building Coaches” mini-course. I think you’ll be shocked at what you get for the money. Check it out here: https://www.labarberagroupuniversity.com/building-multiple-coaches-atmultiple-levels