Episode #250: Don’t Say “No” For The Client

At the age of sixteen, I was wandering around the streets of a lower working class area in the suburbs of Brisbane, working my first job, trying to sell expensive Encyclopedia Britannica to the punters who lived there. Despite my callow youth, I had a tremendous gift as a salesman. I could tell by looking at the house from the outside whether they were interested or not in buying Encyclopedia Britannica and so could determine whether I should knock on their door or not. I was saying “no” for the client. Obviously, I had no clue what I was doing.

The only training we received was to memorise, word for word, a twenty five minute pitch for the buyer, synchronised with showing the flash looking pages inside the encyclopedia. I am sure though there are many much older and wiser salespeople out there, still making that fundamental error I was making. Eventually, I discovered I didn’t have any x-ray vision gift. I was just an idiot.

There will be plenty of opportunity for the buyer to say “no”, so we shouldn’t be joining in to support them on that quest. Even before the call, we will have anticipated some potential pushback and we are fully armed and ready to go when it emerges.

I was reminded of this x-ray vision into the buyer problem recently. The top salesperson of an organisation I know, said “no” for the buyer. He was an intermediary for me with the client and didn’t like one of the conditions of the sale I was proposing. This was an important source of his commissions for him and they had been a big buyer over a number of years. He had them wrapped up in cotton wool and was extremely nervous about maintaining the relationship.

I have learnt the hard way and so I don’t believe in saying “no” for the buyer, so I pushed it. I rejected his rejection and told him to put my request to the client. We got into an elongated email wrangle over this, but not only am I dim most of the time, I am also supremely stubborn, especially when it comes to sales. Stubborn and dim is a lethal combination. He didn’t like it at all, but he held his nose and put my proposition to the client. Guess what? They went for it. As we say in Japan, “even the monkeys fall from the trees” and even Mr. Number One sales guy can get it wrong. I refrained from mentioning that Japanese proverb of course or being a smarty pants and just thanked him for his cooperation.

One common case of saying “no” for the client is when the prices are raised for the product or service. Salespeople invariably will start whinging to the boss, that the client will never agree to buy at that higher price. Effectively, they are saying “no” for the buyers. There are many ways to dilute the pain of raising the price. The terms of payment can be elongated. The guarantees and warranties can be expanded. The rise can be counterbalanced by discounts for volume purchases. The proposition can be ramped up on the value equation scale. Additional incentives can be packed together with the original offer to justify the price rise. Services can be thrown into the product purchase process to make it more palatable and vice versa. Interestingly, salespeople complaining about the price increase, spend zero time thinking about how to sell the value increase to the client.

Price increases are one thing, but defending existing prices against discounting is another case of having to say “no” to the customer. In Japan, salespeople are very weak in front of the customer. The buyer here isn’t King but GOD and GOD doesn’t brook hearing “no” from salespeople. The constant complaint from our clients is that their firm’s salespeople identify too closely with the client and don’t defend the company’s policies well enough, including pricing.

I had the same problem with one of my salespeople. He was happy to discount and take a lower commission, even though the firm made very little profit. He got his base salary and some commission, so he was happy. I wasn’t so happy. I get it - the logic is simple. The salesperson heavily invests in the relationship with the buyer and works hard to defend that relationship, even against their own employer. This sounds crazy, but they know the value of an existing customer, compared to the pain and effort to find a new buyer.

This is where the value element has to be worked on more, so that salespeople can justify the existing pricing, without resorting to discounts to get the business. The basic sales skills of the team have to be improved, especially their communication skills. This don’t say “no” for the client arena, shows the real capabilities of the salesperson. Sadly, there is a major population decline underway here and salespeople are in increasingly short supply. The quality of the people we can hire isn’t going to improve, so our sales training mechanisms and our sales leadership mechanisms, become even more important than any time in the past. Are you ready for this and are your people ready to say “yes” for the buyer?