Chapter 12
Having the Confidence to Say No
IN THIS CHAPTER
Saying no: when, why, and how
Satisfying two parties even when you say no
Keeping your interests safe
New business salespeople love to hear prospects say yes to them. A lot of teachings focus on how to ask the types of questions that can result only in positive, or yes, answers early in the sales cycle, so, as the theory goes, your prospect gets into the habit of saying yes to you. Excuse me, but we’re in the 21st century here, and prospects are as equally sophisticated as salespeople. So don’t try to patronize them with things like this because it will more than likely end with you getting the relationship off on the wrong foot, and as I discuss in Chapter 3, first impressions set the scene for the entire relationship.
Don’t risk being labeled as a pushy salesperson at the very beginning (or ever, in fact), and use your experience and common sense at all times. Forget the tricks or old-school techniques to try to manipulate your prospect; you’re building a business relationship of equals.
New business sales is also not about you saying yes to everything you’re asked for; building a client-supplier relationship is about give and take, even from the initial exchanges. Of course, you don’t ever go into a sales situation wanting to or expecting to say no to your prospect, but the reality is that it’s going to happen, sometimes frequently, during a sales cycle, and although no can be a massively powerful word, as I discuss in this chapter, the way you say it is as important as the words you use.
Understanding When, Why, and How to Say No
It can easily, and wrongly, be assumed that your job, in a new business sales role, is to just agree with everything that your prospect asks for, but nothing could be further from the truth. You represent your company and have a duty to secure the best deal that you can, and on occasion this means taking a hard line and pushing back on your prospect when he wants to do a lot of taking and not much giving. In this section, I look at when and why this may be the case and how to say no.
When you may need to say no
Sales cycles rarely if ever run to their conclusion with all parties in total agreement all the way through. In fact, at many points in a typical sales cycle, such as the following, the salesperson is in a position of having to reject a request:
- During qualification (see Chapters 9 and 19)
- When handling objections (see Chapter 10)
- During negotiations (see Chapters 16 and 20)
- During deal structuring (see Chapter 11)
As the sales cycle moves through each of these stages, the impact of saying no increases, as does the likelihood of it becoming an issue that needs to be addressed.
Why you may need to say no
In this section, I explore both clearly defined and hazier reasons why a no may be necessary as your sales cycle progresses.
- Clear reasons: Clearly defined reasons for saying no to a prospect include the following:
Failure of some qualification criteria (see Chapters 9 and 19) may be a reason either for not taking a sale any further or for asking some searching questions. Be upfront in this case. I’ve told prospects that they don’t meet our criteria and so we can’t work with them at this stage, but if these two things change, then I would be delighted to look again.
This type of no message leaves the door open while sometimes making your solution even more attractive to the prospect because he can’t have it. It’s called taking away and, used with care, can leave you in a stronger position in the sales cycle.- A clear case of needing a no message is where a specific request for a function as part of your solution just can’t be done or can’t be done without making significant changes.
Another clear no case is where a request is unreasonable or contrary to company policy. In Chapter 11, I tell a true story of my first attempt at buying a BMW, which resulted in a failed purchase by me and a failed sale by the salesman due initially to my request for a discount being contrary to company policy.
For details on handling discounts or requests for them, see Chapter 11. When turning down a request like this, be sure to get your message across clearly but professionally.
- Hazier reasons: Less clear reasons for saying no to a prospect may include things like the request could be met but wouldn’t be cost effective to provide it, or it wouldn’t add long-term value to your solution, or it took your proposed solution in what you consider to be the wrong direction. I address this type of situation in the later section “Sometimes it’s not meant to be.”
How to say no
Saying no to a prospect doesn’t necessarily mean saying the actual word no; it’s about disagreeing with a point of view or turning down a request. I rarely advocate using the literal word no because it’s too closed of a word and can convey that a dead end has been reached, when more likely than not what you actually want to convey is a “no, but …” meaning.
Find phrases that allow you to turn down a request without using the word no, and practice your delivery, for example:
- “There may be a better way to achieve this.”
- “Have you considered looking at it this way?”
- “I’m not sure that’s the best way to approach this.”
- “Can you help me find an alternative?”
Of course, sometimes a simple “I’m sorry, but I can’t do that” is the clearest message to deliver, and in that case, don’t delay in delivering the message clearly and concisely but also professionally and positively. Don’t ever gloat at saying no. As a new business salesperson, you’re likely to hear no more often than yes as you progress through your career, so consider how being on the receiving end of a no makes you feel — dejected, disappointed, and frustrated are some adjectives you may apply in times like these. So when you need to deliver a negative message to your prospect, bear that in mind and be professional, courteous, and solution-oriented in your delivery.
Saying No Doesn’t Mean that a Deal Isn’t Possible
Sometimes no doesn’t mean “no, and that’s the end of the matter.” A no can be any number of things. Life would be so much simpler if we all just said what we really mean!
Even a significant no offers opportunities to a new business salesperson, and it’s not the same as walking away from a deal. In Chapter 10, I cover the issues associated with walking away, but here you need to understand that saying no is an opportunity rather than an obstacle, and opportunities should be the lifeblood of a top new business salesperson. The following sections cover two important considerations:
- The first thing to consider is whether the need for the solution is still there or whether the obstacle negated the need, which seems unlikely if your qualification (see Chapters 9 and 19) was accurate. Assuming that the initial need still exists, you need to find a way around the obstacle before it becomes immovable. Strike here as soon as the issue raises its head, and be sure to cover the obstacle and its solution in a contact report (which I introduce in Chapter 3). You want to avoid fixing an issue only for it to return later, so you need to demonstrate that it has been addressed and then the sales cycle can move forward.
- Go back to basics and give yourself permission to think outside the box when faced with a no situation from either party. How can you present the issue in another light to shift the focus from the sticking point? If the prospect’s need is real, and you’ll know this only if you’ve correctly qualified, then there’ll always be a way to work around issues that result in a no.
Using no as a negotiating point
Consider whether the issue that has presented itself is a real one that needs to be taken seriously or a negotiating position that’s being established. Look beyond the obvious, and find the real issue that needs to be addressed. If you’re hitting an objection that has already been covered, then use the contact reports to demonstrate that it is no longer a real issue. Any new issues that are raised need to be dealt with, but if they are anything substantial, then ask why the problem has only just arisen and was not part of the stated need. If you don’t get a sensible reply, then you can let your prospect know that you consider him to be playing games that you won’t entertain.
There is nothing wrong with taking a hard line to time wasting or posturing, but you do need to handle it with care and allow your prospect to back down gracefully without being seen to lose face. Take the sting out of a no by focusing on the positive aspects of achieving the goals in the ways you have shown him.
If you find that you’ve come up against a negotiating point, then you have a wider range of options besides just saying no, even in the nicest way. If your prospect is playing hard to get and you don’t believe that the issue is a real one or a deal breaker, then let him sweat it out for a while by using the power of silence. See whether he changes his position or backs down completely when you don’t respond. Some prospects will just try to see what they can get away with, so don’t feel the need to defend your decision not to run around after them if you encounter a prospect who introduces issues for the sake of them.
Giving yourself permission to change the rules
Sometimes getting to a no position on an issue can be refreshing because it gives you permission to change the rules to work on a solution that addresses the objection or stumbling block. In changing the rules, you have an opportunity to reengage with your prospect, building a deeper relationship in the process, and work with him to help redefine the question together, seeking a solution that has a feeling of joint ownership.
At some points during a sales cycle, you have permission to easily introduce a step change in either your solution, perhaps extending the scope of it, or in the way the deal is structured (see Chapter 11). One of those points arrives naturally when you get to a no question, something that’s to be acceptable to either party with the status quo. This, almost of necessity, requires a bit of rethinking and gives the opportunity to introduce a step change as a means to an end (in other words, getting past the no). Getting to a position where it becomes “our” solution is a major milestone in a sales cycle, and the prospect will then feel ownership and is much more likely to champion your cause internally.
Protecting Your Interests
Being confident enough to say no is sometimes necessary to protect your interests, either personally for the new business salesperson not wanting to be seen as a pushover or for the company to, for example, protect profit margins.
Don’t allow yourself to be backed into a corner with demand after demand for concessions; as you find out in the following sections, saying no is a powerful weapon that you have at your disposal, so be prepared to use it tactically when necessary. You need to be able to justify your actions whenever you say no to a prospect, and the decision is likely to be reviewed at internal sales meetings, so be sure in your actions and be ready to justify them to colleagues.
Dealing with professional buyers can be a challenging time, especially for less experienced new business salespeople (see Chapter 13 for the full scoop on this topic). Having the ability to say no to counter unreasonable demands thrown at you is powerful as long as you use it professionally and with integrity.
A deal at any cost isn’t your aim
You should never get yourself into a position of needing a sale so desperately that you’ll give anything away to secure it. Something has gone badly wrong if you get to this stage and you need to get support from colleagues to rescue you.
Every concession you make needs to be funded in some way. Rarely can you get something for nothing, and all funding actions result in an impact on bottom-line profitability. Company reputation needs to be safeguarded, too, because giving away concessions will quickly spread in your industry and soon all your prospects will be after the same thing, with devastating effects on your bottom line.
Sometimes it’s not meant to be
There’s such a thing as trying too hard. You’re not going to win every sale, regardless of how well you qualify it, because life doesn’t work that way. So accept that you can and will increase your win percentage, maybe as high as 80 percent or more, but be realistic in your expectations of 100 percent because it’s not going to be sustainable.
Pick the battles you can win when it comes to being prepared to say no. Some are more important than others, and some are more winnable than others. Every new business deal has two sides, and your prospect will also be looking for some wins, especially if he has a management chain to report to. So pick your battles with care, and focus on the big picture, not the nitty-gritty detail where you could give ground without too much difficulty.
For example, don’t spend time and energy trying to win every point if they don’t really matter in the long run. You may want to concede on some implementation timescales more easily than a copyright issue. Timescales can be adapted to meet needs, but copyright is fundamental. Spend your time on the things that really matter.