5 Signs Of A Bad Sales Deal & How To Avoid Them

We were called into an organisation recently because, while they seemed to be making sales, many of them were “bad” for a number of reasons.

While my team member was on a flight home we were talking via “WhatsApp” about the solution, and how they can avoid this in the future.

Here is what we are advising to identify them, and “AVOID A BAD SALE”:

Unbalanced Value Proposition:

One of the first signs of a bad sales deal is an unbalanced value proposition.

If the deal heavily favours the customer while neglecting your company’s needs and profitability, proceed with caution.

Evaluate the terms and conditions, pricing, and potential return on investment (ROI) to ensure that the deal is mutually beneficial.

Negotiate to create a win-win situation or consider walking away if the balance cannot be restored.

Lack of Alignment with Your Ideal Customer Profile:

A bad sales deal often arises when there is a mismatch between the prospect and your ideal customer profile.

The deal may result in wasted time and resources if it doesn’t:

  • Align with your target market
  • Meet the customer’s needs
  • Meet their ability to pay

Before engaging in a sales deal, conduct thorough research and qualify prospects based on their fit with your ideal customer profile.

Focus your efforts on prospects who have a genuine need for your product or service and are capable of becoming long-term, profitable customers.

Overly Demanding or Unreasonable Requests:

When negotiating a sales deal, pay close attention to any requests or demands that seem excessive or unreasonable.

If the prospect expects unreasonable discounts, extended payment terms, or unrealistic deliverables, it could indicate a problematic partnership.

Consider whether meeting these demands would strain your:

  • Resources
  • Profitability
  • Compromise the quality of your product or service

If the requests seem out of line, be willing to push back or walk away if necessary to protect your business interests.

Lack of Trust or Transparency:

Trust is the foundation of any successful business relationship.

If you notice a lack of transparency or dishonesty from the prospect during the sales process, it’s a clear sign of a bad deal.

Watch for red flags such as evasive answers, inconsistent information, or a refusal to provide essential documents.

Trust your instincts and conduct thorough due diligence to verify the prospect’s credibility and reputation.

It’s better to turn down a deal with a dubious prospect than risk getting entangled in a harmful partnership.

Unfavourable Contract Terms and Conditions:

Reviewing the contract is vital to uncover potential pitfalls.

If the contract terms and conditions are heavily one-sided, leaving your company exposed to significant risks, it’s a warning sign.

Look out for clauses that limit your control over the product or service, impose excessive penalties or termination fees, or grant the prospect unfair advantages.

Ensure the contract is fair and protects your interests.

Negotiate for more balanced terms or walk away if the other party is unwilling to make reasonable adjustments.

In the fast-paced world of sales, it’s crucial to exercise caution and discernment when evaluating potential deals.

Recognising the signs of a bad sales deal early on can save you valuable time, resources, and potential damage to your company’s reputation.

By being attentive to the terms of a sales deal, you can navigate the sales landscape more effectively.

Remember, it’s better to pass on a bad deal and focus on finding the right opportunities that align with your business goals and values.

Contact KONA today to discuss tailored Sales Training for your Sales Team!