expenseaccount

Business Development

Client trying to back out of $1.5M deal. WYD?

They signed a non-cancellable contract, upfront payment required, and did not meet their payment terms. I'm pissed and want to send them to collections. My manager wants to take a softer approach and try to keep the business. I think that route will be a distraction from other deals I could work on. What would you do?

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33 comments

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CuriousFox

WR Officer

🦊

You need to follow the lead of your manager. Cooler heads prevail bb. 😎

expenseaccount

Valued Contributor

Business Development

*sighs* i know this to be true

LordOfWar

Tycoon

Blow it up

What about renegotiating into a multi-year deal?

For example: 3 years, $500k per year with a fixed rate of increase of 15% per year to make up for them backing out.

Also include the cost of getting insurance on their payments since they can't be trusted.

expenseaccount

Valued Contributor

Business Development

This is the closest to what I'm going to try

LordOfWar

Tycoon

Blow it up

Best of luck, let us know how it goes

ADudeBeingAGuy

Politicker

Account Executive

You have their home address?

CuriousFox

WR Officer

🦊

Kidnap their loved ones with @paddy

ADudeBeingAGuy

Politicker

Account Executive

Hey nice loved one's you have there, would be a shame if something happened to them.

jefe

Arsonist

🍁

Was looking for this

braintank

Politicker

Enterprise Account Executive

Why are they trying to back out?

expenseaccount

Valued Contributor

Business Development

they say it's no longer in the budget ...

SaaSam

Politicker

Account Executive

At the end of the day, the most you can do is file suit. Is your company willing to spend up to 40% of the value of the deal forcing them to pay? Are the willing to spend 150% of the bill to keep from paying?

You're in sales, not legal. Isn't much you can do outside of negotiating and getting them to change their mind. If you want to do more than that you'll still likely not see anything from it as that'll go to the lawyers.

jefe

Arsonist

🍁

Whatever it takes

antiASKHOLE

Tycoon

Bravado's Resident Asshole

well, it's non-cancellable. I guess, too bad and now you start looking for the next one to replace it when they go out.

Pachacuti

Politicker

They call me Daddy, Sales Daddy

Send it to the lawyers to deal with. Your job is to sell.

ChumpChange

Politicker

Channel Manager

Don't react... respond. Take some time to evaluate the situation and assess the options you have available. Always start off with an olive branch before you launch the nuke.

Kosta_Konfucius

Politicker

Sales Rep

Whats the softer approach?

expenseaccount

Valued Contributor

Business Development

Trying to work out different terms, shifting delivery dates, reducing scope, not telling them to fuck off to their faces

Slapsnacks

Praised Answer

Account Manager

How much does your company show up in the public eye? My company is literally in the spotlight where we are, so we can not afford a bad review - hence nobody going to collections. Now granted my average deal is only 5k, with 20k being the top end. But overall, nobody goes to collections at our office, no matter how much they owe. Luckily that does not effect my commission.

playerone

Politicker

Regional Account Executive

You can always send them to collections. Start soft and then start tightening the grip

butwhy

Politicker

Solutions Engineer

Nuclear button - anything to avoid the claw back.

saaskicker

Celebrated Contributor

Enterprise AE

Threaten collections and send them what happens i.e. your business is not in good standing (you can't take on loans/debt crushes your credit) and that should warrant a response quickly, have done this in the past to get a payment, even if it burns a bridge - as a new biz rep ill take the 1.5m for them to put the product on the shelf and cry for the term vs. not have them pay.

salezkween

Opinionated

Enterprise Account Executive

Sounds like Customer Success dropped the ball. Customers are less likely to churn if they see small wins in the first 30 days. May want to talk to your manager about the hand-off and implementation process.

GDO

Politicker

BDM

Try soft at first. The hard way are still possible afterwards

TheRealPezDog

Notable Contributor

Account Manager

Don't let your anger get the best of you, take it on the chin and try and salvage the relationship. Not to mention you have HUGE leverage now over that client as they probably feel extremely guilty... I'm siding with your manager (and I HATE siding with Management)

BarefootDave

Opinionated

EAE

customers miss payment terms all of the time, just ride their ass until the pay up

Diablo

Politicker

Sr. AE

Why do they want to back out?

Svarty2

Independent Consultant

Play nice and they’ll come back, hopefully for more! Word will spread and you’ll get some referral biz. Sue them and get maybe 50% after time and costs, lose their continuing business and anyone in their network.

TennisandSales

Politicker

Head Of Sales

umm calm down and take the soft approach first FOR SURE.

then loop in senior leadership if needed

THEN send them to collections. if you send them to collections you will lose the customer and never have a chance to win them again.

Nc138

Manager

They must like what you offered and you did a good job. Try to work it out. Your client could end up at another company and call you in for even a larger deal. Always do the right thing for the long term.

Gasty

Notable Contributor

War Room Community Manager

congrats yo.

maksssssss

designer

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maksssssss

-1

designer

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expenseaccount

Client trying to back out of $1.5M deal. WYD?

33 comments

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