David A. Fields Consulting Group Consulting Prospect Says “No” Because Their Business is Down: Two Opposing Responses
If a prospect declines your project (or pushes you to lower the fees in your proposal) because the prospect’s company is facing undeniable economic pressure, you could respond in notably different ways.
Let’s say your consulting firm has been wooing Dunn Wenbrok, CEO of the healthcare magazine Sick Times. A project seems likely, but when Dunn sees your proposal, he balks at the price.
Following negotiation best practices, you ask what other objections he has (none), then inquire what concerns him about the fees.
Dunn explains: “The scope you’ve outlined in your lowest-priced alternative looks good—I wouldn’t want to skinny the project down further. And your fees aren’t out line… but Sick Times’ revenue is down, expenses are up, and I don’t feel like we can afford your services at those fees right now.”
How should you respond to Dunn’s objection? You don’t want to lower your fees for the same scope, of course.
The spectrum of responses is anchored by the following two choices:
The Confident Response
That’s why you need us, Dunn. The people, plans and thinking that got Sick Times into this situation are not suddenly going to be your ticket to success. You need outside thinking and an injection of change more than ever. This is, frankly, exactly the most important time to invest in our services.
Upsides
- You could win the business now.
- Your confident stance may be the ray of certainty Dunn needs while he wrestles with a challenging situation.
- If Dunn engages you now and Sick Times’ fortunes improve, your firm will be recognized as a hero.
Downsides
- Dunn could conclude from your upside-down response that you’re arrogant, disconnected and not someone he’d want to work with.
- By diverting funds from what Sick Times actually needs most at this time, your project could actually cause more damage to the client.
- If Dunn turns you down, it’s probably forever. After all, if he declines to work with you when, in your words, he needs your consulting firm most, why would he turn to you any other time?
The Compassionate Response
Wow, Dunn, it’s no fun to tell someone you want something but can’t afford it. I’m sorry you’re in that position and I certainly don’t want our project to cause you more financial stress. Let’s set it aside for now and revisit it in a few months. As long as we’re talking now, though, want to brainstorm some ideas on how to help Sick Times recover?
Upsides
- Your caring response will strengthen your relationship with Dunn.
- You may still win business now by collaboratively exploring ways your consulting firm could help Dunn.
- Even if you don’t secure an engagement now, you’ve planted seeds for the future.
Downsides
- By setting your proposal aside, chances are you won’t win an engagement now, and a project with Sick Times in the future is far from assured.
- You could be seen as a “pushover” rather than as a confident leader.
- A more aggressive consulting firm could swoop in and capture Dunn’s business.
Personally, I lean toward an 20/80 mix of confidence with compassion. It sounds like:
Ouch, Dunn, that’s a tough spot to be in. My sense is a lot of good could come from engaging now, and our work may bail you out of your current spot; however, I 100% trust your assessment of your situation and support the decision you make on whether to move forward now or push it out.
Do you prefer the Confident Response, the Compassionate Response or some mix of the two?
Text and images are © 2024 David A. Fields, all rights reserved.
Mix of two sounds better
Agree, Rajeev. There’s some combination of confidence and compassion that feels better than either extreme alone.
Thanks for starting off the conversation today!
I love the 20/80 split. It is a bit tough in my industry at the moment (healthcare staffing (post pandemic)) and several prospects are down 40% in revenue. I will circle back to them with these strategies.
Great idea, Aaron. There are a number of sectors facing headwinds right now, and even in strong economies some companies flounder for a variety of reasons. Continue to build your relationships and, when they recover, they’ll turn to you.
I appreciate your sharing what’s going on with you, Aaron. Keep me up to date with your progress.
Will do! Thanks David! I will have to email you a fantastic success story in which I read your book and began a consulting practice and has some immediate success! Thank you for providing such a great framework for consulting.
Wow, Aaron, my whole team is looking forward to that email. A story like that get’s pinned on the Achievements Board we review every week.
Frameworks are only theory. It’s the people who implement them that ensure value is created in the world. Good on you for taking action.
David,
I’ve worked with a serial entrepreneur for almost 30 years, and we’re currently working on scaling up business number 5. We were discussing this very topic recently, and he said something profound: “You can lead a horse to the airport, but you can’t make him fly.” Confident and compassionate, right?
Smart friend, Doc. Reminds me of my high school Latin teacher, who explained to the class, “You can lead a horse to water, but you can’t lead a horticulture.” That compassionate, confident teacher always had a way with
wardswords.I’m always glad when you chime in, Doc. Keep the comments coming!
Again you managed to make me explore an interesting detour, David: The horticulture quote likely didn’t originate with your Latin teacher (although s/he gets credit for implanting it in your mental aphorism collection). It is attributed to Dorothy Parker (and quoted by Mae West?)…
Sources: wikiquote.org/wiki/Dorothy_Parker and phrases.org.uk/meanings/418100
Excellent research, Franziska. Mr. Carmen is responsible for all manner of lasting scars on my psyche, and since he’s undoubtedly passed away (he wasn’t a spry chicken 40+ years ago), I will bravely blame him now for all writing quirks I exhibit!
Your 20-80, with a caveat of “We need your focus on this project”, seems best. Also, I like to get a time frame of when to reconnect.
Exactly right on setting up the next conversation, Chris. That’s a best practice for every interaction with a contact–prospect or no.
Thank you for adding that important step to the script!
You, sir, are a wild and crazy guy! 🙂
In good, crazy company, Doc!