Speed kills deals

Less haste, more value

“Time kills all deals”

It’s a phrase most salespeople live by. But in recruitment, the rush to agree a deal is responsible for killing value, ruining relationships, and taking us away from the outcome we want.

You can probably remember your recruitment trainer warning you that a delay to the sales process could be fatal to your chance of picking up the job. ‘Always be closing’ was a favourite in my day.

But if you want to show your client that you value what you do - and that they should too - then sometimes it pays to take a step back when it comes to talking fees.

I see too many recruiters rushing through the negotiation stage, driven by the fear that they might lose the deal. From the client’s perspective, it looks like they’re driven by fear… so the client takes advantage.

If you feel you have to close out a deal by the end of the meeting then you leave yourself wide open to the ‘take it or leave it’ play. Your client can name their price, because they’re in complete control of the timing.

You need to turn this negotiation on its head. First, demonstrate your value in a consultative conversation about the role, the client’s situation, and their wider hiring challenges. Introduce your services and fees.

Then wait.

Your client might be surprised by a recruiter showing this level of confidence. And if they’ve been well trained by their procurement team, they’ll tell you they’re surprised. They’ll suggest a much lower price, and expect you to agree to it.

But the situation is simple: they need you.

If they need time to come to terms with this fact, give them time. For you to rush the deal at this stage would be to admit that you need your client more than they need you. Which is not a good look.

It rarely takes more than a week for a client to come back to you with the news that, actually, they are willing to pay you the fee you proposed. 

I appreciate this might be a big shift in your thinking… but it leads to a bigger shift in your revenue and profitability.

If you want support in building a more confident negotiation process for your team, simply reply to this email and I’ll explain more.

Jon

P.S. When I talk about a big shift in revenue and profit, I mean it. Recruiters routinely slash their perm fees by a quarter just to get the deal done quickly. 

Take a look at your numbers for last year. Now calculate how much you would have billed if you hadn’t reduced your fees.

Now look at what that would have meant for your profitability. Like I say, it’s a big shift.

If you want support in building a more confident negotiation process for your team, simply reply to this email and I’ll explain more.