52 Weeks of Sales Success

When you’re struggling to do deals in a competitive marketplace, you may think you could never afford to “fire” customers. Letting go of a deal voluntarily seems crazy. After all, when leads are scarce, you want to believe that each of those leads has the potential of turning to gold. Sometimes, though, you have to say “no” to deals, regardless of how desperate you may be for the business. In fact, turning down a deal that’s wrong for you may be one of the best skills you learn from this book.

Let me give you an example from my own business. I had a listing that needed a price reduction. (A listing is the contract between seller and agent that lets the salesperson represent the home for a given amount of time.) The home was listed at $159,000, and I knew that the price needed to be reduced to about $139,000 in order to sell. The homeowner resisted the price reduction. Making things worse was interference from another agent who was telling my customer that the listing price should have been even higher than $159,000. We argued with the owner for three days. We had a six-month listing agreement, and we were two months into it. I knew this house wasn’t going to sell in that market at the higher price.

I figured I’d rather give up the listing today than disappoint the owner four months down the line. So that’s what I did. I thanked the customer for the business, but told him I thought another agent would be a better match for him. I walked away and didn’t look back. Maybe that other agent was able to sell that house for $159,000. I doubt it, but I was already focused on my other clients who were following my guidance.

I wish I could take credit for this particular tip, but I learned it years ago from my wife, Kathy. She told me I was spending far too much time on certain deals. She’d say, “Ralph, you’ve spent 10 hours on this file this month. Wouldn’t it make sense to take that same time, go out and get five more listings, and let this one go?” And she was right. Part of being a successful salesperson is recognizing which deals to concentrate on and which to let go.

Here’s my advice: If you have five deals that you’re working, figure out which one gives you the most trouble and let that one go. You will automatically get more business because now you will be able to work more productively instead of spinning your wheels. You can play offense instead of defense.

Having a customer with unrealistic demands is just one reason to make the painful decision to give a customer the heave-ho. In the following sections, I highlight several more.

WHEN YOU CAN’T DELIVER

Sometimes you may not have the product the customer needs, or you’re stretched too thin. In these cases, you may be tempted to keep the deal anyway, but remember the downside. If you can’t deliver on your promises, you’ve lost that customer permanently. Even worse, the bad reputation you may get in your industry will hamper all your future efforts. When you can’t deliver, drop the deal. Making promises you can’t keep is a sure way to destroy your reputation.

WHEN THE CUSTOMER IS TOO NEGATIVE

The old saying about the customer always being right doesn’t mean you have to put up with abusive comments or an extremely negative environment. Sometimes a customer distrusts salespeople from the get-go. He may have had a bad experience with a salesperson and he’s going to take it out on you.

When you find yourself dealing with a negative, abusive customer, evaluate how important this deal is to you. Obviously, if your production level is high, it’s easier to walk away from a deal that’s draining your energy. But even if you’re struggling to get started, it may be right to drop someone who is consistently abusive or argumentative. After all, you’re there to help people, not make enemies. For every nasty customer, there are dozens more nice people who can use your services.

WHEN THE DEAL DOESN’T FIT YOUR BUSINESS PLAN

In Week 6, I encouraged you to draw up your own business plan, and I hope you took my advice. This is a crucial first step on your road to sales success. When I put my plan together, I was very specific about what kinds of deals I was going to do and where I was going to concentrate my efforts. If I find myself getting drawn into a deal that doesn’t fit my plan, or one that I know will only distract me from my longer-term goals, I turn it down.

To take a simple example, let’s say you’ve been selling in the lower price range of your industry. Your goal is to move into a higher price range. You should concentrate on developing customers in the higher price range. You’ll still get calls from your old marketplace, but you’ll have to decide when to let those go to free you to pursue your new goals.

Ralph’s Rule: Turning down business may sound like insanity to a struggling salesperson, but knowing when to say “no” and then having the courage to say it is vital to your long-term survival and success. Once you develop a strong customer base, try to develop some judgment about which deals to keep and which to let go. It’ll pay off for you in the long run.