It’s a very common scenario: when working with an executive search firm in Milwaukee to find a new employee, one of your first questions is exactly how much their services will cost. It’s a reasonable question, but when this comes up at the beginning of the sales process, countless hours can be spent coming up with an elaborate proposal and cost estimate. If the sale ends up falling through, that means all of that time has been wasted. If a company’s proposal-to-win ratio is low, it is often due to premature pricing. As you can see, this is not a good way to do business.
Why Is Premature Pricing A Bad Idea For An Executive Search Firm In Milwaukee?
There are a few specific reasons why this is a bad practice, including:
- Inaccurate pipelines: If an executive search firm in Milwaukee is pricing too early in the sale process, they’ll end up with bloated and imprecise pipeline reports. Make sure that the sales team is dealing with the appropriate individual who has the authority to sign off on the purchase. They’ll also need to have a good idea of the client’s budget and timeline.
- Wasted time: It’s very disheartening for a sales team to spend all of their time working on proposals that have a low chance of turning into final sales. Instead, it’s better to focus everyone’s energies on fine-tuning propositions that have been properly vetted.
- Hasty discounting: When pricing negotiations begin too early in the sales process, the salesperson might be talked into offering inappropriate discounts. Accurate estimates can’t be provided until the sales team knows exactly what the client needs. If discounts are offered too soon, it may turn out later that the company can’t honor that promise.
A Good Sales Team Will Make Sure The Estimate Is Accurate
Here at the Lawler Group, when a client asks us what our services will cost, we like to provide an estimate that is as accurate as possible. We try to respond with something like, “I understand that that’s important to know, but I’d like to answer that as precisely as possible. May I ask you a few more questions first?”
At this point, we need to find out where you are in the buying process. Are you still shopping around and comparing prices, or are you ready to buy? Knowing this will help inform the proposal process, so we know how close the sale is and can prepare accordingly without wasting any time.
A good strategy for us is to come up with two or three broad options ranging from “budget” (least expensive) to “premier” (more pricey). These will be ballpark figures at this point. If there are any value-adds or accessories, we list those on a separate menu so that the client can see all of the options and set a budget accordingly. At this point in the process, a rough estimate is all that is required. The exact price can be hammered out when you are ready to sign on the dotted line.
This approach will help all of us to avoid falling into the trap that an executive search firm in Milwaukee often encounters: that of premature pricing leading to wasted time and low profitability. We will be able to keep the sales process moving along instead of getting mired down in elaborate proposals that may or may not turn into actual sales. This method means better customer service as well as more efficient processes for the sales team.