SellingBrew

Insights & Tips

Already a subscriber? Login

Become a subscriber and unlock an information arsenal focused on making your sales operation more effective.

The World’s Dumbest Sales Decision

If you’ve been working with sales teams for any length of time, you’ve probably witnessed some pretty perplexing sales decisions, am I right? Tactics that made absolutely no sense whatsoever. Strategies that had no basis in marketplace reality. Sales decisions that wouldn’t pass muster at a swap meet, much less an established B2B enterprise.

And let’s not forget the best parts—i.e. the rationalizations and explanations for why these silly decisions made sense in the first place. Isn’t it hilarious what people can come up with to justify the really, really bad decisions?

But as bad as they may be, these head-shakers are often highly instructive. They can provide a lot of insight into the organizational dynamics and personal behaviors we have to be prepared to deal with. And besides, knowing what not to do…and why…can keep us from falling into the same traps.

To that end, we regularly gather examples of “silly sales decisions” from the SellingBrew community. If you haven’t provided your examples yet, please use this simple form to do so:

SellingBrew Poll: Examples of Silly Sales Decisions in B2B

Venting about the silly things we’ve witnessed in the past is sooooo cathartic, I just can’t resist getting in on the action…

So here’s the dumbest sales decision I’ve ever witnessed:

A VP of Sales at a large manufacturer executed a contract to directly supply a top retail chain. At first glance, this seemed like a big win worth tens of millions in revenue over the three-year term of the agreement, and cutting out the middleman to boot!

Upon closer examination, however, the terms of the contract stipulated that the retailer would receive a flat discount of 30% off of the manufacturer’s Distributor Price List. Of course, the company’s Distributor Price List was already heavily discounted, with margins averaging 20% at best.

The justification? The rationalization? Wait for it….

Look guys…with 20% margins, I know this 30% discount seems bad. But just wait until the volume ramps. Then you’ll see that this is good business.

A gradeschooler could easily see that 30% will always be greater than 20%. But it took a finance person, walking through volume projections for an hour, to finally get this VP to acknowledge that this contract would never—and could never—be profitable, at any volume level.

Silly? Sure. But “sad” is probably the more accurate description. Boy, that felt good! Your turn…

SellingBrew Poll: Examples of Silly Sales Decisions in B2B

Get Immediate Access To Everything In The SellingBrew Playbook

Related Resources

  • Attracting and Capturing Better Leads

    Isn't it frustrating when sales gets the blame for poor performance when the quality of leads is the real problem. In this on-demand webinar, learn about a number of strategies and tactics for maximizing the quantity, quality, and value of your sales leads.

    View This Webinar
  • Are They a Price Buyer or a Poker Player?

    In this expert interview with Nelson Hyde of Holden Advisors, you will learn how to tell the difference between true price buyers and buyers who are bluffing.

    View This Interview
  • Negotiating Profitable Deals

    Everything comes to a head when your sales team negotiates a deal. You want to win, but you don't want to leave money on the table. So, how do you help your sales team to become better negotiators, so they win the deals they should, at the right price?

    View This Webinar
  • Can You Benefit from Better Deal Management?

    Some companies close deals rapidly at the expense of margins and profit. Other companies protect margins and control discounting at the expense of cycle-time and close-rates. In this guide, you'll learn how leading companies are able to achieve the best of both worlds.

    View This Guide