How many consultants actually share with you how bad they screwed up versus always pretending to have the right answers at the right time all of the time? If your answer is “never”………..then read on and I will gladly share a war story. In addition, I hope that this cautionary tale will put over $100,000 in your bank account versus keeping it out.
Let’s start at the beginning. I met with a potential client and we both quickly recognize that we can accomplish some meaningful financial objectives together. The two face to face meetings establish we like each other, can work together, I am qualified and we have similar business beliefs. The potential client wants me to give them a proposal to specifically accomplish three specific goals over four to six months. After a week’s worth of work, a draft proposal is prepared. Thereafter, two telephone calls discussing details and an email was sent for additional clarification. Notably, in the last telephone conversation, the potential client says that they would like to get moving on Step 1 right away. After some fine tuning of the proposal, the final email was sent with enthusiasm.
There are two words you never want to hear someone yell in the Army “booby trap”! (For the non-military, a booby trap is basically a device like a landmine, intended to harm when unknowingly triggered by the presence or actions of a person) In other words, you think you’re on safe ground and as you apply weight to your next step, you hear a “click” sound and your instincts kick in and say, “ohhhh that did not sound good.” My click came a week after the proposal was sent on a follow up telephone call when the voice on the other end of the call says “we have been really busy, people are traveling and we have not had a chance to really dig into the proposal.”
To fast forward and get to the point, the client had no idea what their requested grand plan was going to cost, so they ran with the consultant all the way to the finish line. The consultant generally knew how much it was going to cost and thought that the quality conversations and the company size surely meant that the potential client generally knew how much this would reasonably cost. Wrong……..”Booby Trap!”
I stepped on a business land mine. The potential client had NO IDEA. They were only mentally prepared to spend around $30,000 and went into cardiac arrest at $137,500. Yes, yes yes……I hear what some of you are saying right now, because I have said it to myself. As a business person, we must always remember assumptions and generalized conversation will likely lead to troublesome waters with our fellow employees and potential clients. In the aforementioned example, the client would have spent $30,000 without a second thought and that would have reasonably likely led to the completion of the entire project worth around $137,500. The math is simple, anything between $30,000 and $137,500 is always better than $0.
I know some of my readers are thinking there has to be more to it than that, and unfortunately the brevity of my newsletters has left out additional details that would confirm, it is just that simple. Sticker shock, a generalization and poor cost qualification can destroy any proposal and potential for future business.
After reading this, I hope that your sales team members are not running aimlessly through the minefield of outside sales yelling “hey boss, I’m about to land the big one” only to find out it’s a booby trap. A few of those and your company will be with the sales team trapped in a financial minefield. If you feel that way or want an evaluation of your sales team, Meridian Performance Group can quickly help. We know what NOT to do. Equally important, as the President of Meridian Performance Group, I hope you take the transparent and candid message above to heart. Our imperfection and willingness to share is strength to you. Others who profess perfection are actually the most dangerous. Call on a company you can rely to be your trusted advisor in all matters. Meridian Performance Group, LLC – www.Meridian-Consultants.com (Copyright 2013)
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