Saying NO to a client—and by extension, finding oneself in a position to decline a commercial proposal—is not part of a salesperson’s DNA. And yet, if the file has been carefully analyzed and does not meet the company’s standards, refusing it is a wise decision and a matter of simple common sense. In this case, this “NO,” which feels like a heartbreak, can actually be eminently positive because it prevents embarking on a deal that—instead of making money—will end up costing the company.

The Art of Analyzing a Commercial Proposal

As a salesperson, you work relentlessly to generate leads… and it’s working! Inquiries from all over are landing on your desk, which is great news. The natural reaction for any junior salesperson is to dive headfirst into processing every lead that comes their way. Commercial proposals are sent out in every direction to harvest the fruits of their prospecting labor as quickly as possible. STOP! The primary quality of a good salesperson is learning to separate the wheat from the chaff. In short: you must analyze the files and learn—much like a doctor—to provide a quick and clear diagnosis of incoming requests. Which ones will be profitable, and which ones risk becoming a financial pitfall that wastes the precious time of your back-office teams?

In the IT sector, for example, multiple parameters must be considered:

• Does the file meet the profitability threshold defined by your company? The requirements in your hands might be perfectly within your team’s technical capabilities, but the price, the delivery deadline, or overly negotiated payment terms can be the “sand in the gears” that makes the project unproductive.
• Are the client’s or prospect’s expectations realistic? This concerns the technical side. It is a well-known cliché that salespeople drive technicians crazy because they are so preoccupied with selling that they sometimes forget to put the expressed needs into perspective with the solutions actually tested and adapted by their teams. In plain terms… salespeople are often accused of selling anything! If, on top of that, the client is not mature enough regarding their own needs and indulges in a bidding war of eccentric requests, it may become urgent to learn how to handle the word NO.
• Is the project likely to be sustainable? The specifications are technically within your wheelhouse, and the client isn’t inclined to exaggerate price or deadline negotiations… the file seems like a godsend. You are about to send your proposal. Beware, however, of committing your company to a “one-shot” deal which, again, will be counterproductive. A company must be able to plan for multi-year contracts by generating, for example, license renewals. No matter how “beautiful the bride” is, if the collaboration is fleeting, the company will struggle to amortize its fixed startup costs. It is therefore vital to analyze the file by thinking long-term rather than favoring a proposal that looks tempting at first glance but offers no real growth perspectives. A NO in this case is also relevant.

But how do you say NO to a client or prospect?

It’s perfectly normal—uttering those two letters instead of drafting your commercial proposal and getting your client’s signature generates extreme frustration.
It is also difficult to express. But if we rely on the old adage that “time is money,” then the faster a toxic file is detected, the more urgent it is to refuse it.

So why not simply lay your cards on the table with your client or prospect? Explain politely, for example, that their demands in terms of commercial discounts jeopardize your profitability threshold… or that the timing they are granting you is incompatible with providing high-quality services. Knowing how to detect and confront these obstacles is, first and foremost, a way to show your management that you are capable of understanding your company’s economic stakes and that you are taking them into account.

It is also about looking further ahead in terms of communication with your prospect. It is about understanding that they possess a “right brain” as a buyer and a “left brain” as a client. Appealing to their left brain reminds them that they are subject to the same issues as you when they put on their “client” hat. This is a way to elevate the debate. You position yourself as an entrepreneur rather than just a seller. Your frustration at having to decline an order will be compensated by a discussion rich in meaning. And who knows—your frankness might even lead your prospect to reconsider their position and show more flexibility on price and deadlines…

Furthermore, saying NO to a client or prospect following a technical analysis of their file can lead them to question the validity of their request. If their expressed need is a technical heresy, explaining it to them carries the weight of an expert opinion. This might cost you the contract, certainly! But accepting the file as-is would have led you to disaster anyway.
Votre feed back technique sera donc vertueux pour votre client ou prospect.

Your technical feedback will thus be virtuous for your client or prospect. And if the message is heard, understood, and applied, the commercial relationship can be transformed forever. You will need to demonstrate diplomacy and pedagogical skill, but since your refusal to go along with the client is justified by a genuine understanding of their needs, you will come out on top, having fulfilled your duty to advise.