As a business leader, there are a lot of times when you have to take a decision on pricing which results in losing a deal.
I have had to take many such decisions and the sales persons involved in the deal get really upset since they misses their target because of that decision.
See, its very easy to discount to win a deal, but if after winning the deal you’re not able to execute because it’s way out of budget then you get a terrible name. In B2B, if you fail to deliver or deliver badly, then you can be sure that you will not get business from that company again and if the manager involved in the decision , goes to some other company, she will ensure that you do not get business from there also.
I have had a couple of instances where we lost the order, then the vendor who was awarded, did not deliver and after one year of struggling, the customer called us back and gave the order without any negotiation.
And since we did a good job there, they gave us multiple more cases.
The advantage of B2B is that once you do a good job, then generally, the managers want to keep working with you. The inertia and the political situation in the organizations mean that a manager doesn’t want to try a new vendor if she can.
So even if you have to lose a deal, its okay because you will get many opportunities to win. But if you do a bad job, because you don’t have the money in the deal, then you will lose the client forever.
Till next time then.