Salespeople often strive to close every deal, but there are times when it makes sense to walk away. Knowing when to walk away from a deal is an important skill for salespeople to develop and hone. Wasting your time and resources on something that won't yield a positive return can be a very costly mistake.
Three reasons to consider walking away are 1) No Budget, 2) No Communication, and 3) No Need.
No Budget
There are two types of “no budget” - the response they give you because they really aren’t that interested or convinced of the value. And the other is when there actually just isn’t the money to pay for your services.
It’s your job to figure out which it is, and if it’s the latter, you might be better off spending your time and resources elsewhere.
Additionally, when you encounter a customer with no budget, it could be a sign that they don't have any purchasing authority; they could just be researching. In this case, even if you manage to get them to agree to the purchase, their superior might reject it at the last minute, leaving you with nothing.
Get good at figuring out what’s the real situation and walking away (for now) if there are funds available.
No Communication
When it comes to communication, it's essential that you and the buyer are on the same page. If there is a lack of communication or you're getting vague answers, this could be a sign that the deal may not move forward. Respect for your time is also key - if the buyer isn't taking your efforts seriously, it's time to reassess the situation and consider walking away.
It is important to differentiate when the prospect is very busy vs. uninterested because of the lack of communication.
The key in sales is to keep filling up the top of your funnel - meaning that you should prioritize new opportunities over slow-moving or non-moving deals. So if a deal appears to be stuck in neutral, it's best to focus your attention elsewhere.
No Need
If you’ve executed on your sales process to uncover and fill a need, but it’s just not convincing, it's important, to be honest with yourself and the customer and recognize that a sale isn't going to be successful. Walking away from the deal can save both parties a lot of time and effort in the long run.
Knowing when to cut your losses and move on can save valuable time and resources in the long run.
Great salespeople are driven and determined to run through walls to get deals closed. The best ones are able to distinguish between opportunities and know when it’s time to focus on other ones.