When do you want to refuse an order?
When a client is so demanding that it is difficult to fulfill the contract if you accept the order.
In such cases, do we force ourselves to accept the order or decline it, and if so, what method should we use to decline?
When it is difficult to guarantee quality or delivery date
There are many cases when accepting the order would not be profitable, but it is important to refuse so that the relationship of trust can continue in the future.
This is an episode that an alumnus of Company T told me about, in which he was consulted by a sales representative of Company A.
A trading company’s sales representative consulted with Company J about a 3-way coat that sold well,
Company J asked for an order of 15,000 pieces for the next fiscal year at this price.
The salesman of Trading Company A asked for this price because he wanted to order 15,000 units of 3-way coats for the next fiscal year,
He said he was getting more and more worried.
Should I refuse or accept?
The T Company alumnus who consulted with him said that he should first refuse and then negotiate to accept the offer at this price.
The result was that they raised the limit price and the order quantity was doubled to 30,000 pieces.
The sales representative then negotiated with the Vietnamese manufacturer and was able to lower the purchase price by 5%.
I believe that this sales person’s reputation with the section manager improved.
I think my client had decided to place the order with Company A, which we did last time, because of the quality.
I gave them a limit price because it was a large order, but I didn’t think they would reject it.
I think the rejection increased my trust that this sales person was solid.
I believe that they negotiated with other manufacturers, were satisfied with the raised price, and confidently put it to the planning meeting, which resulted in an order for double the quantity.
This is an example of how well it worked out, but refusing is what leads to trust.
Think about it, which would you rather buy from: a sales person who is humble and says he will do whatever it takes, or a sales person who answers your questions and clearly states that he cannot do what he cannot do?
There were two types of applicants at Company T: the type that would take anything and the type that would take everything with a lot of thought and consideration.
The type that takes anything and everything is always in a rush, and although they are extremely busy, they don’t get results,
The type that takes on everything is always in a flurry of work, but never produces results.
It is only natural that salespeople who take orders after taking steps in advance to deal with problems such as late delivery, defective products, and pricing will produce better results.
At Company T, there was a discussion about the importance of who takes the initiative, the seller or the buyer.
Of course, this is because the one who has the initiative can carry out business negotiations more favorably.
In the previous example, Company J had overwhelmingly taken the initiative in placing the order, but when the order was rejected, the initiative shifted to Company A’s sales force.
Buyers and sellers have a fifty-fifty relationship.
If the buyer does not buy, sales will not increase, but if the buyer does not sell, sales will not increase either.
If it were me, I would trust a salesman who clearly says he can’t do what he can’t do, rather than a salesman who says he will do whatever it takes.
I understand the effect of saying no, but how should I say no?
If you say, “I can’t do it,” your client, who thinks he has the initiative, may be upset.
After all, there is a way to say no.
You should always say, “I’m very grateful to you for taking the time to contact me.”
and tell them that you are always 1) grateful to them and 2) explain the reason for your refusal.
Then, 2) explain the reason for your refusal.
In Vietnam, where we manufacture, labor costs have skyrocketed and materials have risen due to environmental regulations. After much consideration, we are unable to make the project profitable. I am truly sorry. ………. The customer expresses his or her apologies, for example, “If it weren’t for this, we wouldn’t be able to do it.
It is not nice to say, “If you don’t do this, we can’t do it,” as if you are telling them off.
It is necessary to be considerate so as not to offend the other party’s feelings. If you say, “I’m sorry, but could you please do it this way?
It is very difficult to refuse, but you have no choice but to decline, for example, “I am very sorry, but I would like to ask you to do this.
This is to express your own feelings.
And 3) Propose alternatives.
It is important to make realistic suggestions such as replacing the material, changing the design, or changing the delivery date or price.
It is important to have an alternative proposal that can be done this way, not that it cannot or will not be done.
Refusal will lead to the next business development.
By refusing, you gain trust.
By refusing, we take the initiative.
Refusing is denying the other party’s request, so if you use the wrong words, you may lose their trust.
It is important that your conclusion is based on sincere consideration of your client’s request.
Here is a story about an excellent manager of a retail store in Gifu named M. He said, “I know all the tastes of my regular customers.
He said, “I know all the tastes of my regular customers. But even if I know that a customer buys something because he/she likes it, it is important to be clear about it if I think it doesn’t suit him/her.
But even if I know that a customer likes what he buys, it is important to clearly tell him if I don’t think it looks good on him. By doing so, they feel that the store is serious about me. The other day, a customer told me she didn’t have to buy an item she was going to buy.
He said, “Go home and look in your wardrobe, there are many similar products.
The customer was impressed that you know me better than I know myself.”
This store is not a store that sells anything. It is important for me to make them think that I will really work with them to find clothes that suit me.
Refusing with sincerity leads to trust.
It is necessary to convince the other party that the refusal is not based on salesmanship or only for the benefit of the company, but that you are refusing for the sake of both parties.
It is necessary to convince the other party that you are refusing for their mutual benefit.
The product sold well, so we received an additional order, but the delivery date is a month later, which is an unreasonable delivery date, but we can certainly predict that the product will remain unsold unless it is delivered in a month.
If you fail to deliver on time, your customer will have a pile of bad inventory. It is wise for both parties to refuse.
The customer may say, “If you know you can sell it, why can’t you do it? You are an unreliable supplier,
However, if a relationship of mutual trust has been established, the customer may say, “I know I can sell the product if it goes up in a month, but the production site must be very tight because that sales person said so.
If the delivery date is delayed, there will be a mountain of inventory. If we delay delivery, we will end up with a mountain of inventory, and the next time we place an order, we should place a larger initial order.
Even the negative act of refusal can lead to further trust building if there is a “relationship of trust in the ordinary”.