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Enterprise Sales Executive

Long-Term Customer Objections

I have a long-term customer that my company has been established as their preferred vendor for services. I started this relationship from the ground and have since sold the services my company offers at 28 of their 31 locations. I was recently contacted to add service at their 3 remaining locations and was also informed me they are projecting to add 8 new locations per year. I have always bent over backwards for this customer and provide them with almost immediate responses anytime they reach out. Their pricing is set well below our normal pricing parameters. After proposing the 3 remaining locations I was told that they would be "shopping" me against other vendors. This threw me off a bit as the sales process is generally very quick and without much negotiation. It has been three weeks with very little feedback and I have a feeling that they have not yet received the bids they were looking for.

Curious if anyone else has dealt with a similar situation? If so, what tactics are best to convey the customer to remain with your company? How much pressure should be applied in a scenario where there is a strong relationship but you are now being compared against your competition?

👑 Sales Strategy

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Pachacuti

Politicker

3

They call me Daddy, Sales Daddy

How high in their organization are you placed? C-level, V-level, Director..... This is very important to a long term relationship.

Did they indicate WHY they are shopping you? Is it an annual Procurement requirement, some C-level cost-cutting initiative, or something else?

Are you able to meet with them in person? Harder to say No to someone when you are looking them eye-to-eye.

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Good Citizen

1

Enterprise Sales Executive

I deal directly with the COO & CFO for contract approvals. They feel that they are not receiving the best pricing even after explaining countless times that they are the most heavily discounted customer in my portfolio and likely in my company for the services being provided. I have zero room for further discounts at this point and would likely not discount further even if there was room to do so.

Part of me is fine with them asking for other bids because it will provide them with confirmation that they are in fact receiving excellent pricing. The part that bothers me is that I had thought we had a strong relationship and had established trust in this area. Ultimately, them holding off on approval screwed my quota last month, which in turn hits my pocket book.

There was no other incentive disclosed besides a threat to leave my company for cheaper service. One of the frustrating parts of sales - we are often looked at as greedy or untrustworthy, when in fact I am taking money away from myself to provide them pricing that will keep them as a customer and continue the long-term relationship.

Pachacuti

Politicker

0

They call me Daddy, Sales Daddy

Thats a tough situation and you are ideally positioned.

You can't stop them from doing additional due diligence.

My question - do you conducted QBRs with them or some other regular business review with them? Its a good way to consistently remind them of the value you bring to them.

Also, is your c-level engaged with their c-level? That can be very helpful (usually).

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Good Citizen

1

Enterprise Sales Executive

Yes and Yes. We just completed a QBR with C-Level personnel from both sides. It's a smart business practice on their end, just frustrating from the sales side. This account is one of my more commission rich accounts.

Pachacuti

Politicker

2

They call me Daddy, Sales Daddy

then its just business and you need to stay the course - don't offer anything additional unless they bring it up.

Sunbunny31

Politicker

2

Sr Sales Executive 🐰

Sounds very normal, if alarming to you.

Either they're going to validate that you're still their preferred vendor, or your pricing is going to drive your competition to maybe take a bad deal to earn some business.

It's most likely a best practice to explore options from time to time as a way to ensure that they are getting the best they can and validate their choice. They may even be getting directed to do so by the board.

Sounds like you're doing what you can to stay close and be responsive to the account.

antiASKHOLE

Tycoon

1

Bravado's Resident Asshole

They have every right to do so just to keep you "honest" is going to be the tactic that most competitors will use.

I wouldn't get offended or upset about it, just maybe turn the touch meter up a little bit and be on their sideline more than on the court playing to win their hearts.

ThatNewAE

Big Shot

1

Account Executive - Mid enterprise

That's okay, It's not personal. Businesses are very less about personal relations / rapport or anything. Any new leader comes in / any leader has a bad divorce and flips - anything can change the org direction if it's a small company. So they are just really shopping around, right?

I'd appreciate honesty that they told me they are window (or not) shopping. Don't go unhinged just yet. Keep your pace as is, calm as is. Now ask what made them go shopping, something feature related / pricing related or just company's directive. Then take steps accordingly.

Don't jump the gun yet, mi lord.

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Good Citizen

1

Enterprise Sales Executive

Well said. Thank you. I've been here before and am sure I will be in the same situation again. Mostly was just curious to hear how other salespeople navigate this type of scenario. This platform is a great place to learn and receive feedback from people that know the grind. I love reading all the different approaches and perspectives.

ThatNewAE

Big Shot

1

Account Executive - Mid enterprise

Me too ! Love it !

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