Expiration for a quote in SaaS?

I'm working on a big proposal right now with my sales engineer for our most complex solution. He works across the business units at my organization so is more used to deals of this size. I trust his product knowledge, and to an extent I trust his sales judgement (if not his social skills/emotional IQ). He put together a proposal and smack dab on the first page he has "quote valid for 30 days".


(For context, my ASP is about $10k. This quote is for $90k. Monthly quota is about $50k).


I've seen this in situations where you are selling a physical good and the price could reasonably increase. And I've done this myself (much shorter timeframes actually) when a potential customer haggles on the price for a smaller deal. "You are approved for the discount through 5pm EST Friday" etc etc. But I've never really done it as an opening salvo like this when we have yet to get into negotiation.


For a deal of this size, where if I'm being frank the prospect was interersted but not exactly hot to trot, it sort of seems like contrived urgency that could backfire. But maybe I'm overthinking it.


They are not going to look at this as a discount (at this point it's not), so what could my potential answer be when they inevitably ask "why does it need to expire in 30 days?"

👑 Sales Strategy
📈 Closing
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11
QueenSoopers
Opinionated
3
Account Executive
Just say “it’s standard verbiage in our contracts.” Our team sees faster turn arounds with it vs not and I also sell SaaS.
ABCvs
Valued Contributor
3
VP of Growth
All proposals that my team sends out expire after 30 days or at the end of the quarter. It’s good hygiene imho and saves you from having old/stale proposals out there.

Fwiw my team deal sizes are 200k-1.8m generally. So don’t you worry your sweet little head about the expiration.

Obviously this is not the case if we have clear timelines to close established, etc etc.
braintank
Politicker
3
Enterprise Account Executive
You should already be doing this to CYA.
hocktony
Big Shot
2
smileNdial
ALSO

this can be used to create urgency;

”Our finance team posts incentives and expiry based on our resource/market demand/ etc, in this way, would it be unreasonable to get this signed off on by [expiry date]?”

“Yes” -> help me understand what needs to be done to get there: legal procurement IT final sign off

“No” ->why not? When would be more appropriate, let’s work to that date

This is absolutely critical in letting customers know that pricing won’t be held forever, and helps you in case they’re shopping

Bring it up first and own it, so you can use it as an opportunity to get buy in, rather than an assumed objection
CuriousFox
WR Officer
1
🦊
He's addressing it up front.  Kinda like ripping a bandaid. 
Pachacuti
Politicker
1
They call me Daddy, Sales Daddy
It’s pretty standard to put an expiration date on pricing. 30-90 days is standard.
TechSalesQueen
Executive
1
Sr. Enterprise Account Executive
Doesn't sound like this deal is properly qualified which is why we're now considering throwing discounts at them to move faster.  Find the compelling event.  Find their pain.  Show and prove the value your offer brings to solve for that pain and compelling event.  I don't discount.  Ever.  I'm rarely asked for one either.  You need to bring value and a professionally composed business case to your prospect.  No one wants something "cheap".  They want something that works.  And solves for what they need it to. 

I'd also be up front about timelines with them.  Our pricing is always subject to change.  So I want to ensure i give you the formal pricing when the timing is appropriate.  Typically our internal approvals are valid for 30 days.  Does that work within the timelines you have established for making a final decision and signing contracts?   Yes?  Great, let's review.  No?  What are your timelines?  What is your budget?  Go back and dig into pain and use it to re-establish their pain against the value your solution brings OR qualify it out.  Every minute you waste on an unqualified buyer is time you could've been out finding someone qualified.  
Blackwargreymon
Politicker
1
MDR
All proposals that my team sends out expire after 30 days or at the end of the quarter. It’s good hygiene imho and saves you from having old/stale proposals out there.
FormerStartupJobHopper
Tycoon
0
AE
ABC and Braintank, what is my reasoning/approach if they go dark for 40 days then come back looking to negotiate? Keep the quote the same and make it clear I was bluffing? Say that we happened to raise prices in the last month in the middle of Q2?

Not saying you're wrong but I can't think of a reason why prices would change in that time. Wouldn't that break trust with the prospect?
braintank
Politicker
2
Enterprise Account Executive
All quotes should have expiration dates, period. It's not a negotiation technique it's just good business practice. Call any local business or handyman for a quote and it'll have the same verbiage.

Without an expiration date what's to prevent someone from getting a quote and coming back a year later asking for the same price? Even if your business model or pricing has substantially changed.

You're really hung up on this trust, bluffing, and negotiation paradigm. This isn't a negotiation technique. I doubt your prospect will even bat an eye at 30 day expiration since it's standard boilerplate. 

Talk to your CFO or legal and see what they say. I bet they'd shit their pants if they knew quotes were going out without expiration dates.
FormerStartupJobHopper
Tycoon
0
AE
No I do get what you're saying and I am looking at it differently due to the typical nature of my role. What I am getting stuck on is what do I do if the opp lasts longer than 30 days. Raise it? Or kind of not address it and keep it the same
braintank
Politicker
1
Enterprise Account Executive
You can just refresh the date on the quote. Don't have to raise the price. 
Diablo
Politicker
0
Sr. AE
It’s a standard business practice as there are a lot of changes happen to business internally. If I offer any big discount, I do let them know that this is a special pricing and the by default the discount code expires in 7, 15…. days etc.
Error32
Politicker
0
ISR
She's obviously not AE material.
Clashingsoulsspell
Politicker
0
ISR
She's obviously not AE material.