Related YouTube video: https://youtu.be/Srd150kWs8Y

Introduction

One thing stands out for me among small companies is whether they can deliver what they promise. It seems to be an obvious concept not to lie, but I see so many vendors promise things that they never deliver on, as if this is a good thing to do, or that no one notices.

As a vendor, what should you do? Overpromise to hopefully make a sale, and then try to deliver what you can, or be honest at the beginning, and promise what you can actually deliver, knowing that you might not impress the customer enough to win the sale?

Here are some practices to consider when making commitments.

1. Use The Golden Rule — “Treat others as you would like to be treated"

Recall a shopping trip when you had an exceptional experience with a salesperson, when you received perhaps the best treatment ever. Now write down some of the traits of the salesperson who made the experience so effective. Compare your list with the following items:

  • Helpful.
  • Understood my needs and priorities.
  • Didn’t pressure me.
  • Listened to my questions and gave me direct answers.
  • Was knowledgeable about the product.
  • Didn’t sell me a more expensive item than I needed, which allowed the product to sell itself.
  • Offered a free or low-cost trial to evaluate the product.
  • Gave me a fair price and a good return policy.
  • Provided excellent post-sale support.
  • Followed through on commitments.

Individuals all over the world tell me exactly the same answers when they describe the traits of an exceptional salesperson. These selling characteristics work because they focus on the customer’s agenda rather than the salesperson's.

It is a safe assumption that customers want to be provided with credible information, educated about possibilities, and undersold rather than oversold (also known as being lied to!)

2. Upgrade your offerings so you can promise more

If you really want to impress the customer, then upgrade the services you provide and how you provide them. For example, if you want to promise a faster response, better quality, or more features, then plan to improve those things for your company.

3. Detect any company rationalizations that get you into trouble

  • “We agree to crazy schedules because we are customer-focused”
  • “We must promise more than we can do so that we can win sales”
  • “It’s not realistic to make realistic commitments”
  • “We tell management (or the customer) what they want to hear”
  • “The business climate makes us overcommit; we have no choice”
  • "We say yes to make the customer go away and stop annoying us"
  • "The economy is booming, and there is no time to make an accurate proposal. We are successful without those practices."
  • "The economy is in a slump, and we must underbid and overpromise to get in the door with the customer.”

Practices to consider when making commitments

  • Clarify when a commitment is required, rather than assume that a commitment is required immediately. Maybe you have more time to think through the proposal than you thought. Ask the customer, "When do you need a commitment by?" Or "Is next week OK for a proposal so we have time to investigate the details?"
  • Request time to create the proposal so that it is sound or explain that rough estimates you are providing now are just that.
  • When some of the work is ambiguous, commit to the pieces of the project that are known and can be estimated. Establish subsequent deadlines when the remaining pieces can be defined and committed to.
  • Assess the risks and your availability prior to making commitments. For example, "We have two people out sick, so there could be a week delay. I will keep you informed by mid-week."
  • Explain the risks of the current project scope and deadline and recommend mitigation actions: "Yes, we can simplify the solution and reduce costs, but the cheaper material will need to be replaced sooner. Do you prefer option 1 with better materials, or option 2 with cheaper materials?".
  • Provide options for various schedule, scope, quality, and cost trade-offs. Make sure each option is achievable. For example, "Option 1 is the deluxe version with the ABC feature that warms the water to 72.5 degrees every time. Option 2 is the quality version without the deluxe feature. Option 3 is the scaled-back version that only squirts cold water one way. Option 4 is the cheapest solution to get started."
  • Make plans and estimates comprehensive so that they can be believed. Plans and estimates show customers how their needs are being addressed. Presenting few details and assuming the need will be met somehow can make the customer unsure about your credibility. "I will replace your roof for $20K – it will be awesome, trust me!"

Conclusion

The long-term goal is to become a well-respected supplier that people can trust and tell other people about. If you overpromise and under-deliver, people know and tell their friends.