Rainmaking Problem #25: Selling a Service that May Embarrass an Entrenched Competitor.
I recently received a query from an old friend who is faced with a problem I have seen before. In both cases, a firm has a service that will benefit clients tremendously by taking advantage of some relatively unknown features of the tax code. In both cases, the firms find that prospective clients tend to vet the service with their auditors, before going ahead. The auditors argue against hiring the firm, often on grounds counter to the facts of the tax code. But also, they are probably embarrassed that someone outside their firms is bringing the fresh idea to their clients. Though the firms with the new services can demonstrate that the auditors are misinformed about the objections they pose, the auditors’ resistance often kills client interest in going ahead. Often, the auditors’ strong relationships with their clients and easy access to them weigh more than the logic of the firms trying sell over auditor resistance.
What would you recommend these firms do?
December 2nd, 2009 at 10:00 am
Friendly, good-hearted fact-education is about the only option that’s worked for me. CPAs and Tax-Attorneys routinely kill insurance deals for old clients that would have been vastly superior to old policies. Changing, or doing something new they didn’t offer might make them look bad. So they dismiss great improvements (in ignorance?) — after all, they are “neutral” and have no commisson-interest like the agent who only wants to make a sale, right?
Since this is sometimes actually true, in these cases I happily (don’t show any sign of offense) offer to sit down with the CPA/Tax-Attorney (whoever the deal-killer might be) and carefully go over the facts WTIH the prospective clients. I emphasize the word “facts”, “looking at the numbers-don’t lie” and making the best “business decision for the family”… If I get the meeting, my objective is win over the CPA/Attorney with my likeability AND command of the facts.
I lose more often than I win with this. But then, I’ve preserved (maybe even strengthened) the relationship, and I’m there to argue another day. And I’ve planted seeds that might sprout in due time — which I kindly and discreetly water with a pointed follow-up letter and/or email.
David
The Charitable Steward
agsteward@juno.com
December 2nd, 2009 at 10:29 am
David:
This is excellent advice.
Ford Harding
December 11th, 2009 at 1:14 am
The issue here seems to be wrapping paper. As it’s almost Christmas we are all on the lookout for surprises wrapped in red and green with Santa, reindeer, snow (even down here in Australia) and tinsel. If a gift is wrapped in blue ribbon and pink paper we might dismiss it as unworthy or, at best untimely.
If we have a great proposal for a client we will wrap it in the most enticing manner, making it almost irresistable to them. Firstly we might show the vision, the big picture benefits. Then the low risk strategy of implementation and then finally the gains on offer - short, medium adn long term. The client is hooked! The problem is tha auditors (in this case) think diferently to the client. Different perspective, different concerns, different agendas.
If we are doing the pitch to a third party we need to wrap things differently, re-organise, re-package.
You could also go with saying: “If this proposal I’m putting to you today is everything you could wish for, what would you do next?” If they say, “I’ll run it past my auditor/CFO/CEO/Board for approval” I would offer to help them do just that. Let’s get everyone who needs to be in on this decision together and go through it. This way we are better placed and prepared to overcome obstacles.
December 11th, 2009 at 9:48 am
I’ve sold consutling services and dealt with this type of situation for 20 years. The first thing I usually do is disarm to do battle. I make it very clear that I pose no threat to any existing relationship with any service provider and have no intent to replace it. Then I differentiate. I make it clear that I bring extraordinary expertise in a niche area which regular consultants and auditors can not be expected to have. I then demonstrate the expertise or research with evidence.
The next step is to disturb the prospecive client out of their comfort zone. I help the client truly see the size of the hole in their bucket. We explore how much does doing nothing cost versus how much does taking action with my proposal cost. Then we do a pain comparison. If the prospective client opts for the lesser pain by being interested in pursuing my proposal, I then seek to confirm who is driving the bus. We explore the resistance they may expect to receive from their present advisers and possibly why. Could it be self interest? The question is asked, “why would you give your present advisors who have a vested interest in killing this proposal the power to veto what is in your company’s best interest?”
Once the prospect is on side and has confirmed he/she is driving the bus, we strategise together on how to sell this to the existing advisors so that the existing relationship is not threatened. I have a way to do that too.
December 12th, 2009 at 10:55 am
Mike:
Many thanks for sharing your experiences and techniques on this issue.
Ford Harding