The War Room
Question
Post

Holding my ground, possibly costing me the business

This is a current situation that I am running into and putting this out to the group and looking for some feedback. I was sent out a RFQ with an up and coming company, I know what their goals are for growth over the next few months/years and the timeframe they are looking for the aggressive buildout (won't have time to wait on stock/availability).


Long story short, I have submitted pricing and got the proverbially "you won this part of the business but XYZ items are high can you match?". As I have reviewed the pricing they are requesting many of the items are at or below manufacturer costs and it has become known that this competitor is just selling on price to not lose the business.


I have pushed back that I am not budging on price for those items (we have the stock available) and have asked to confirm we are comparing apples to apples on the product and if the competitor actually has immediate availability on what they need for this buildout. I haven't got a response back but figured I would throw it out to the room to see if you all would hold your ground or give a bit as I am waiting to see their response.

With limited info would you hold your ground?
Attached poll
*Voting in this poll no longer yields commission.
πŸ‘‘ Sales Strategy
πŸ“ˆ Closing
πŸ›’ Energy & Industrials
18
UrAssIsSaaS
Politicker
+8
SaaS Eater
Aside from you having stock and competitor not, is there anything that makes you superior to them?Β 
Mobi85
Politicker
+5
Regional Sales Manager
We are in distribution sales and have multiple locations compared to only 2 locations from the competitor on the west coast.Β  So our advantage is speed to market resulting in less downtime on the buildout.Β  Also have major backing from our manufacturers to allow trainings and continued education to occur with the end user but again they have used the one company in the past and I am the new kid on the block..
UrAssIsSaaS
Politicker
+8
SaaS Eater
Makes sense, sounds like you can lean into that and the fact that they have no stock and hold you ground. If you stay strong what is ballpark chance you lose the deal? and how much of a discount are they looking for?
Show 2 more replies
InQ5WeTrust
Arsonist
+9
Sales Savages, what is our profession? Trauma!
Don't want to trap your future self by lowering prices now.Β 

Hold the line!
Mobi85
Politicker
+5
Regional Sales Manager
Line is being held, it is the waiting game that is making it really funnnnn…
CuriousFox
WR Officer
+13
Senior Account Executive
Tis life boo.
Show 4 more replies
JustGonnaSendIt
Opinionated
+4
Burn Towns, Get Money
If the competitor doesn't have stock, and has a lead-time, you should hold your ground.

Otherwise you may need to give up a little. But make the case that you have business costs, and X is the lowest you can go, after you determine what you're willing to give up.

Hopefully the competitor either has lower quality or longer lead-times to delivery than you. You can make the argument that you get good, cheap, and fast, and you can pick two. Your offer is Good and Fast.Β 

If they want cheap, they gotta budge on Good or Fast.
CaneWolf
Politicker
+12
Call me what you want, just sign the damn contract
If you're truly the winner, I think hold ground. Do you have any coaches or champions you can have a secret conversation with to get the lay of the land here?
Mobi85
Politicker
+5
Regional Sales Manager
So many of the employees at this new company came from a company that just went under and my experience with the previous company was an identical battle with the same exact people. So no champions at this moment but also know if they give us a chance we won’t let them down.
AlecBaldwinsHairline
Valued Contributor
+5
SDR Manager
Don't become your prospect's bitch.Β  RFQ are so nasty, if it's part of your core business I feel bad for you.
ragnarlothbrok
Politicker
+7
Key account manager
absolutely hold your ground, by the sounds of things your competitor won't be in business too much longer if thats how they operateΒ 
RealPatrickBateman
Politicker
+8
Amateur Butcher
RFI, RFP, RFQ's are THEE WORST way to do business. No one really wins because everyone is selling razor thin or negative margins to push volume. So in the end, the customer thinks they're smart because "they shopped" and the vendor doesn't give a shit about the customer because theres no money in it.Β 

Always Stand your Ground. Always...
RealPatrickBateman
Politicker
+8
Amateur Butcher
Also, every time you don't stand your ground and you give in to the "pricing" discussion, you lose 7 years off your life. Its science.Β 

Diablo
Politicker
+7
AE
Apart from product and price, I also look at intalgible values that we have for prospects; it can be your service, inventory availability, product knowledge, tech team knowledge, helping customers with their R&D etc. depending upon the products you sell.

Is this is a one time or recurring purchase for them.
Simo
Politicker
+7
Director of Sales
I would hold the line and focus on value. If they want a lower price, change the conversation to ROI.Β 

I would respond with something like "I'm surprised you are asking for less considering your goals. If the pricing doesn't make sense, let's dive back into the ROI to ensure it makes sense for you."Β 

You don't need to be the cheapest, you need to be the most valuable.Β 
WomenWantMeFishFearMe
Politicker
+4
SDR LXIX
Fuck.. I meant to say yes I would gold my ground. HODL.
UrAssIsSaaS
Politicker
+8
SaaS Eater
This all made me LOL
WomenWantMeFishFearMe
Politicker
+4
SDR LXIX
I'm not using my mechanical keyboard, and remote gaming mouse, since my wife's boyfriend wanted to play my games. Excuse my awful typing and fat fingers.
Show 2 more replies
jefe
Politicker
+8
Sales Director
Tough situation, but definitely hold your ground.

Unfortunately, my company has definitely lost deals where competitors underpriced, and had the prospect come back (unfortunately in a contract and too far gone to move) lamenting their choice. Very bittersweet when that happens, but still worth it.
alecabral
Arsonist
+9
Director - Digital Sales Transformation
I'd always hold my ground if this was an honest bid, and actually if they already decided you won, it can't be about the pricing. It has to be about your overall value prop or something that made you the obvious choice. You get to decide if you want to concede them this though, or maybe you can just create another scenario with minimum loss over your current bid and see if that goes. In any case, I would not back down. If price was the only thing that mattered they would have gone with the guy giving away the product at production cost.
5
If you had to move to another business unit, what is it?
Question
7
Which BU are you moving to?
+34
verbalzzzzzz , Β  BCD , Β  TheRealTommyCallahan Β  and 34 people voted
2
What Do You Think Will Be The First Cryptocurrency Project To Hire A Team Of B.D.Rs To Sell Their Coin
Question
6
10
Generally speaking; how much discount are we giving clients without managers approval to drag those stubborn deals over the line?
Question
10