I mentioned earlier that my “hit rate” with this process is about 80 percent, though some people in my Mentor Program report upward of 90 percent. In any case, that means that about 60 percent of the time I simply get a yes, 20 percent I have to cope with “issues,” and 20 percent I simply don’t get the business.
Bad things happen to good people like you and often me. You can anticipate some and cope with them or even resolve them. 1. The client loves an Option 3 facet but cannot approve expenditures above Option 2.
In this case, technically there is another buyer just for Option 3, because you’ve exceeded your buyer’s grant of authority with it. But it makes no sense to try to move to that more senior person when your buyer is ready to proceed. Nor does it make sense here to cavalierly say (as I often do suggest to those buyers who have the money but want to see if they can get a “deal”), “Well, that’s why we have Option 2.”
You can’t just grant Option 3 at Option 2 fees because the next question is, “How low will you go?” Perhaps to Option 1 prices?
But what you can do is to move things around. Suggest that you can move one facet from 3 to 2 at a slightly higher price or, if possible in the context of your options, take some things out of 2, move something from 3 in, and simply charge the Option 2 fee. It helps to be flexible in these cases if you believe your buyer simply doesn’t have the ability to invest more. But you must show that you’re removing something, not just lowering the fee.
2. The client can’t approve a check over a certain amount even though the buyer has a budget for more than the total amount.
It’s often the case that the buyer has a $500,000 budget, for example, but can’t approve checks over $150,000 without another officer’s approval or a committee review. That can be deadly, because people without any interest in or appreciation of the project will feel it their earthly calling to question the amount being invested.
The best way to cope with this is to suggest that the buyer authorize more than one check at his or her grant of authority until the full amount is paid. This may re- quire that you change the terms of payment or that time frames be extended or work protocols shifted. You’ll find a case study earlier in the book where this exact issue arose and was handled in this manner.
You do not want your proposals going to the legal department or to executives who have not participated in the process. So suggest this alternative to your buyer. (Many will suggest it to you.)
3. Your buyer says something to others that threatens the project.
Rehearse with your buyer if for any reason other high-level people need to be apprised of the work that’s to come prior to the proposal being signed. I’m not talking about further approvals, which means that you haven’t been speaking to the real buyer. But often there are executive councils or senior committees of which your buyer is a member and on a regular basis they inform each other of changes in their operations so that others can copy best practices or adjust to new ones (which is actually a pretty good idea).
But your client should not mention details of the proposal, merely the results expected of a new initiative. Ideally, the buyer shouldn’t even mention you. But coach the buyer: For example, tell the buyer asked about the cost to simply say the proposal hasn’t been reviewed yet although it should clearly be well within budget. This will help you avoid an inadvertent creation of some other interested but unhelpful parties.
4. The buyer gets cold feet.
This is the reason that I urge you to act speedily and with all due haste. You want to strike while the buyer is still warm in the glow of your agreement. But, stuff happens.
The causes can be legion, and we’ll deal with legitimate, last-minute objections below. They can include an unexpected event, a random comment by a superior, fear expressed by a subordinate, even a misunderstanding by you or the buyer that emerges when the buyer sees everything in writing.
Case Study: The Careless Comment
One of my Mentor Program Members in a European country had the equivalent of a $2 million project approved by the COO, who had budget and responsibility for such things. However, before it was signed, a board meeting was scheduled and the executive had to appear and report on new developments. He invited my colleague to observe the meeting as a courtesy.
This particular board included two members of the union, per the contract. At the conclusion of the COO’s report, another board member casually asked what the price was, and the COO told him. The two union members immediately came to attention and suggested strongly that the matter be studied, given the immensity of the fee. The chair had no choice but to agree.
My colleague was told two days later that the project was dead. For all of his preparation, he had never rehearsed with his buyer what to say if asked about the fee.
Follow up your proposal quickly. If you sense any hesitancy, confront it at the time, not later. In other words, if the buyer says, “I looked it over and things seem just as we agreed, but I’d like to. . .” then ask immediately why he or she feels it necessary to talk to others, to take a few more days, to compare it to the strategic plan, and so forth—whatever it is that finishes that sentence above. Don’t hesitate.
Before you leave the buyer with conceptual agreement attained, always ask, “Is there anything you can think of that would be an obstacle to us working together once you see the proposal and the investment levels provide for dramatic return?”
Try to ferret out what you can at that point. But if you encounter this when you make your follow-up call, confront it: “I’m not sure why that would help in any way, and I’m concerned that you may see obstacles that we hadn’t discussed. Please tell me what, specifically, gives you cause for pause at this point?”
Don’t be afraid to do this. The longer the buyer takes, the more bad things can happen. The faster the decision, the faster the best thing happens.