Making A Decision by the End of the Year

Making A Decision by the End of the Year

Finishing the fourth quarter and full year strong is important for every company. During the November-December timeframe, there is a phrase that all sales managers hear from both customers and sellers. If relied on at face value, the phrase can negatively impact forecast accuracy. The phrase from customers is, “We want to make a decision by the end of the year.” The phrase from sellers is, “They [the customer] want to make a decision by the end of the year.” While the phrase may sound encouraging for quarter- and year-end, further discussion is almost always needed.

Under either scenario, what does making a decision by the end of the year mean? Does it mean the customer will make a decision about what product they will move forward with by the end of the year? Or, does it mean that the customer purchase the product by the end of the year? Accordingly, the sales manager should confirm the decision-making timeframe. The sales manager should also confirm whether the product will be purchased with this year’s budget or next year’s funds. Both confirmations will help ensure forecast accuracy of the deal.

All contents copyright © 2015, Josh Lowry. All rights reserved.

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