A Good Defense Can Kill a Deal

This weekend I watched Shark Tank.  I had avoided it because it sounded so goofy and so many other bloggers were on the band wagon.  But what I saw happens all the time in real life too so it was worth discussing.

Over and over people came in with their ideas that they held onto like children.  But when questioned, they were so focused on the person asking the negative question that they ignored the fact that others were still interested!  One couple actually blew the deal because one of the investors asked an, “I’m interested” question while another made a comment about why she was out and they addressed the “I’m out”!  They put all their energy into defense when there was a perfectly good chance of getting the deal if they had just listened and stayed focused on their goal.

If I knew someone going in, I would certainly recommend they accept the “I’m outs” for what they are and hear everyone before they started defense.  They should also remember, as we all should, questions are not negative or positive – they are an indication of interest.  In someone asks you a question, there’s a reason they want to know the answer. So answering it helps move the process along.  Answer them honestly – this is not the time to make promises  you can’t deliver.  If a customer does say “I’m out”, see if you can understand why.  One of the nice things the sharks do is they do explain why they are out.  Most of the time, there is no point in discussing – if the shark doesn’t feel they have any connection to an industry, your talking isn’t going to change that.  But, there are times when they say something that isn’t accurate and the presenter has a chance to explain.  That happens in our sales process too – if a customer says “I’m not interested because…”  you get a chance to really explain why they are wrong.

Now sometimes, they are right.  “I’m not interested because we have filed Chapter 11” isn’t something you can answer.  But, can you offer them something?  Put them on a mailing list to keep up with industry trends?  Call back in 1 month when their position will be clear?  The name of a good industry-focused recruiter?  Something? Offering something even to a “no” shows you believe in your product and actually interested in a relationship.  And that can go a long way to turning a no into a yes.

So be careful not to be defensive when talking to people.  If they ask a question, take it at face value and don’t try to read too much into it.  And if they are “out”, try to give them something so at some point they come back in.