Category Archives: Contract Slippage
Quarter-end Contracts Slip-sliding Away? Check Your Sales Process!
Negotiations went well. You made your case to your buyer, and you have their assurance that the deal will close by the end of the quarter. You update your forecasts and just sit back and enjoy. Nothing can go wrong. Or can it?
There is a term you should know … slippage.
Fast forward now to the second-to-last week of the quarter. Your buyer still hasn’t returned the signed contract, and you’re feeling the heat to get it signed. You call to get a status update, and you learn from the buyer that IT still needs to complete its security audit. You’re in the queue. A week goes by, and there is still no signed contract. Now, your buyer tells you that a purchase of this size will need to go through procurement, and the CFO will likely need to sign off personally. The problem is that the CFO is on vacation and doesn’t share your sense of urgency to sign the deal by the end of the quarter. Now, your deal and your forecast are in serious trouble. At this point, there is little you can do. You can pray that the slippage is just temporary, that the whole deal has not gone south, and that your forecasts are not just off but gone. Otherwise, it is just damage control.
The best way to avoid the need for damage control » Continue Reading.