In sales it’s easy to mistake an indication of commitment as a closed deal. Someone saying they’d like to move forward with your product or service doesn’t mean the cash register is ringing. A deal isn’t done until you have a signed contract or agreement.
The old adage “don’t count your chickens before they hatch” applies here, and there are many reasons why your anticipated sales don’t come to fruition. The person saying they’ll buy may not have the authority to do so or may not be the final decision-maker. Another action may have to happen before they can sign the contract. Even if they are the decision-maker for their department, someone else could have to approve the budget or sign the check.
How do you determine whether your deal is really closed? Ask questions and get a signed contract or simple letter of agreement. Having a down payment isn’t enough—payment AND a signature are real commitments.
Of course, your sales process is unique to your business, but typical questions might include:
- Who else should be involved in this decision?
- Who else will need to sign the agreement?
- Where will you get the money for this investment? – This is a tough question to ask. An alternative is “How will you pay for our product/service.”Does anyone else need to approve the expenditure (important particularly in B2B sales).
- What do you need to see, hear, or experience from us in order to sign the agreement?
- What, if anything, needs to happen before you can sign the agreement and make the initial payment? This can uncover financing needs, financial priorities, or other factors.
- Are there services or agreements you need to terminate before signing with us?
Note that it’s important to set the questions up so that the person doesn’t feel like you are questioning their authority or decision-making. In particular, if you are involved in the home improvement industry, we recommend avoiding the old-school approach of forcing both spouses to be present unless it’s a crucial part of your contract or required for regulatory compliance.
A verbal commitment is a great sign that you are moving toward a closed deal. Now, get the signature and celebrate the sale.
