KendallRoy

Politicker

Opinionated

Catalyst

Deal size reduction. What do you do?

We've all been there.

You had a thorough discovery call that unearthed real pain you can solve.

You had a great demo that resonated with the prospect.

You had a tight, controlled Proof of Concept and now you're finalising commercials.

And then the prospect hits you with it. Despite previously discussing 100 licenses, they now only want to start with 80, or 60, or 40.

How do you respond?

👑 Sales Strategy

📈 Closing

21 comment

Sort by:

CuriousFox

WR Officer

🦊

Take what you can get now and add later. It's EOQ.

Tres

Politicker

Account Executive

A bird in the hand is worth 2 in the bush, right? (Gotta throw some overused sayings in there)

CharmingSalesGal

Politicker

Account Executive

Timing & quota plays a huge factor in this!

CoorsKing

WR Officer

Retired King of the Coors Knights

I sell them what they need and build a mutual path for growth and the phase2/3 add on.

Justatitle

Big Shot

Account Executive

Usually, this means you either take the smaller deal size or no deal at all and personally I'd rather take the deal. I've worked for some companies where the AE will get credit if within a certain time period they upgrade their license.

MrMotivation

Politicker

Sales

Understand why they want the change. Cost? Future growth slowing? Cold feet on full partnership?

poweredbycaffeine

WR Lieutenant

☕️

Start small, get your foot in the door, and build the value for an upsell. Sure, you might not see anything from the additional licences, but you'll have the logo and can feel good about it.

KendallRoy

Politicker

My company is expanding aggressively with new products so we have a lot of freedom with discounts and free periods. When this comes up I generally leverage an offer for a higher license count, and structure the deal so over X years the TCO is the same or a bit cheaper. Works most of the time.

RedLightning

Politicker

Mid-Market AE

Try to isolate what's actually happening behind the scenes. Is this a negotiation move? Is this a hesitancy thing?

SlinginSoftware

Politicker

Account Executive

I usually get deal desk involved to see how we can structure the deal so it looks more enticing. Our deal desk manager is the GOAT!

KendallRoy

Politicker

Yep, that's my exact approach. I've been able to turn "Speak to me next year" to signing next week by structuring the right way many times. It helps to have a lot of freedom and minimal red tape.

Blackwargreymon

Politicker

MDR

Understand why they want the change. Cost? Future growth slowing? Cold feet on full partnership?

Clashingsoulsspell

Politicker

ISR

Usually, this means you either take the smaller deal size or no deal at all and personally I'd rather take the deal.

CharmingSalesGal

Politicker

Account Executive

I struggle with this & I guess it depends on a lot of factors. If it becomes a pure numbers game where value doesn't matter and they're just trying to wittle you down because they can (in true procurement fashion), I have no problem walking. With that being said, if there is a true land & expand opportunity, take what you can now and re-evaluate 6 months down the line.

Telehealth_2the_Moon

Notable Contributor

Director of Business Development

Hell yeah, I'm cool with that. That means they have been talking about it internally and someone with oversight of the money said "get the price down" which is much better than "no".

Get it closed from there and flag it as a likely expansion down the road. Not sure if you get a piece for those in your comp plan, but either way it's a closed deal.

Only time I would push back is if your product would require X number of people across the company to be using it for them to see the benefit. Then it's time to try and do some more digging so they don't end up pissed off when you "sold them something that doesn't do what you said it did" because they don't have enough people using it.

Lambda

Tycoon

Sales Consultant

ask them how it will affect there business to not have the aforementioned licensee. otherwise you didnt really find the pain did you

asalesguy

Member

SAE (Senior Account Executive)

I ask why.

GDO

Politicker

BDM

Sign the licenses they want. Tell them that it s not enough to fully resolve their pain. Agree to sell the remaining licenses when they find the first batch to be successful.

MR.StretchISR

Politicker

ISR

Take what you can get now and add later. It's EOQ.

Mr.Floaty

Politicker

BDR

I'm MM technically and it's a 50/50 split my OTE is 160 but I'm currently above that line luckily.

Cyberjarre

Politicker

BDR

Public Sector AE, I would lean toward mostly Enterprise sized deals. 220 OTE. 50/50 split.

Bravado is a community of trusted sales professionals endorsed by their customers.

Products

The War Room Jobs Salary Guide Tech Sales U

Company

About Us How It Works Blog Bug Bounty

Contact

Press Careers

If you are hired as a contract sales rep by a Bravado customer, we may ask you to prove access to the employee email account provided to you by that customer. This data will be shared with customers to track your sales productivity; customers can use this data to confirm you meet the minimum activity requirements to pay out your ramp stipend and commission.

KendallRoy

Deal size reduction. What do you do?

21 comment

Related posts

What is your quota, average deal size and space?

Company Size?

How big is your average deal size?