Most people are familiar with F.I.F.O. or L.I.F.O. as inventory control terms … First In First Out or Last In First Out. However, they are also applicable in selling. There are two schools of thought.
Proponents of F.I.F.O. would suggest that, in any competitive deal, he who is in first can seal that deal and avoid competitors altogether. L.I.F.O. aficionados prefer to give competitors their best shot and then rise above them and walk out with the sale. There are benefits and risks to each strategy.
Let’s start with the risks. If you choose F.I.F.O., and your customer is keen to shop, you may not even get that chance to close the deal. If you follow L.I.F.O., you may never reach the point of seeing that customer … period.
Benefits … If nothing else, F.I.F.O. folks have a chance to control the sale and to set the criteria that their competitors will have to follow. Even in a deal that the customer has identified as being “competitive”, you will still have an opportunity to change that script.
If you are L.I.F.O., you can take advantage of the work that your previous competitors have put in. Your customer should have a pretty good idea of what they like, and dislike, about what they have seen to this point. And, if you are last, you can still scoop the deal as all other cards have been played … hopefully.
One must always anticipate the unexpected. If you become complacent (lazy), I can just about guarantee you that something, someone, will rear its ugly head and bite you in the hindquarters. This is where good listening, questioning, and qualifying skills become so important. And, of course, where you come in may not be your choice.
While which strategy will work best for you is up to you, your industry can certainly play a role as well as how this opportunity has been structured by the customer. Let’s say that, if they are the ones who are reaching out to you, you are going to want to know why and how they found you. In my day, if the answer was “the phone book” … no bueno.
There is also a considerable difference between a spec’d out “bid” situation and one where the customer has little to no idea of what they want and need. Your first question about that bid should be … who wrote the specs? If not you … it’s probably going to be a tough row to hoe.
In my businesses, in multiple industries, I always preferred to be the first in and the first out. I could set the standards that others would be expected to follow. What I liked even better was either creating the deal out of nothing or getting a great referral. Both are sales gold!
If I was unable to convert that opportunity prior to competitors being given their chance, I always made sure to have valid reasons to get back in front of that customer throughout the entire buying process. By the way … “I just wanted to check in with you and see if you have made a decision” … is not a valid reason.
Regardless, you always want to be the last face that they see! First Out wins. Arriving in the middle of the pack? Not good but, that’s me. How about you? F.I.F.O. or L.I.F.O. and why?
Craig M. Jamieson
Latest posts by Craig M. Jamieson (see all)
- Hiring Salespeople - April 24, 2024
- Nimble CRM Tips & Updates – April 15 2024 - April 17, 2024
- Am I a Sales Luddite? - April 10, 2024