Use the End of the Year to Your Advantage

Use the End of the Year to Your Advantage

Because the majority of companies operate on a calendar year, organizations that create compelling events for their sellers to leverage with customers in Q4 (October-December) can generate win-win outcomes for all parties. In most companies, if you do not spend all of your budget in the current year, your budget will be reduced in the following year. No one wants their budget reduced. Thus, smart sellers use Q4 to their advantage. They help customers spend their remaining budget on next year’s projects by offering incentives for early investments.

While most sellers use discounts as customer incentives, they reduce the seller’s profit margins. Consequently, using investment dollars, product promotions, etc. – that is, company resources that have value to customers, but do not cost the seller anything – are preferable. Investment dollars could be offering the customer $1 for every $10 that they spend for planning sessions, proof-of-concepts, etc. Product promotions could be offering the customer partner consulting services, special SKUs to step-up from standard to enterprise editions, etc.

Helping customers spend their remaining budget in Q4 increases the likelihood of them getting the same or a greater amount of funds in the following year (increased budgets mean increased sales potential). These “budget flush” initiatives also help sellers to increase their personal performance in the last quarter. To be effective, year-end offers should be meaningful to customers. They must also end on December 31st to create the greatest leverage and sense of urgency. No one wants their budget to be reduced. Use the end of the calendar year to your advantage.

All contents copyright © 2012, Josh Lowry. All rights reserved.

Advertisements

Leave Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: