“This is a way to get someone to start visualizing the impact of delay and the impact of not deciding. And by making it real down to the day, you can drive that much further urgency where most people stop at a month or a quarter or even a year.” – David Weiss in today’s Tip 1584
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Scott Ingram: You’re listening to the Daily Sales Tips podcast and I’m your host, Scott Ingram. Today’s tip comes from David Weiss and his Sales Tactician’s Playbook. Here he is:
David Weiss: Hello, everyone. This is David Weiss, Chief Revenue Officer of the Sales Collective and founder of DealDoc, your app for deal coaching. On today’s tip, we will be talking about the daily lost revenue play. So if you’re ever struggling to drive urgency, if you’re ever seeing a slowdown in your deal, if people are like, Hey, I need to think about this, or we’re going on vacation, or so and so’s out, or we’re going to do this next month or next quarter or next year, this is a great play to execute.
Now, in order for this play to work, you need to have built an agreed-upon business case. And honestly, folks, in today’s selling environment, if you are not building CFO-ready business cases in every single one of your deals that you actually care about, you are missing the boat because people are scarce with budget. Budget is already allocated. You need to be creating budget for new ideas. And the only way you do that and get your deal prioritized is with a business case.
So here’s how this play works, assuming that you’ve built anywhere near a decent business case that has been agreed upon.
Take that business case, say it’s a million dollars. You divide that by 250. Now, the reason why it’s 250, as opposed to 365, is 250 is the number of working days in a year, 365 number of days in a year. When you divide by 250, the number is bigger. So it’s also working days. So people don’t necessarily generate revenue on the weekends, even though technically with this equation, you probably could get away with that. Nonetheless, that equals $4,000 a day.
So for every day on your million-dollar ROI that they don’t make a decision and implement your solution, they are losing four grand. Now, if your solution costs 40, 50, 60, 100K, which is probably not too unreasonable with a million-dollar ROI, you can see how quickly a delay of a couple of weeks can really quickly add up to, Oh, shoot. In theory, you could have just paid for our solution in the time delay that you are asking for.
So the way you go about doing this is you say something along the lines of, Hey, look, totally understand that this is a future state priority. However, we agreed on this type of business case with this type of metric, these types of ROIs. Have you thought about the fact that if for every day that we don’t do this, it looks like this, and it costs your business this? It’s a great way to reframe the ROI and make it immediate. It’s a great way when people say, Let’s meet next week. Hey, look, how do we meet this week? So this is an awesome way to create urgency inside of your deals.
So just be forewarned, ROIs aren’t linear. Yeah, I’ve heard arguments like, Well, it’s going to take you three months to get live anyways. Or like, In year one, it’s not as strong. In year two, it’s more like this. I get all that. And you can poke holes in the concept all you want. But the point is, this is a way to get someone to start visualizing the impact of delay and the impact of not deciding. And by making it real down to the day, you can drive that much further urgency where most people stop at a month or a quarter or even a year.
So just food for thought on that. If you like this play, this is called the daily lost revenue play. You can find 78 just like it inside of the sales tactician’s playbook, which exists inside of DealDoc. You can also find a link on my LinkedIn profile. Thanks again. Feel free to reach out to me if I can help you with anything.
Scott Ingram: For links to connect with David and to his entire playbook, just click over to DailySales.Tips/1584. Once you’ve done that, be sure to come back tomorrow for another great sales tip. Thanks for listening!