Brand, Honestly #2 – The signs your brand is costing you

Most businesses respond to slowing revenue by looking downstream. More leads, more activity, another salesperson, sharper pricing, a new CRM. The assumption is that a revenue problem must live in the sales process, so that is where the money and the attention go.

Sometimes it does live there. But there is a question upstream that rarely gets asked: is the brand making every part of selling harder than it needs to be?

You will not find the answer on an invoice. A weak brand never bills you directly. The cost arrives in bits and pieces, spread across the year, filed under other names: sales, recruitment, marketing, morale. The first article in this series gave you three questions for spotting the problem. This one names the pieces and puts numbers on them.

The sales cycle that runs long

When a brand is doing its job, prospects arrive at the first meeting already believing you are credible. When it is failing, that belief has to be built by hand, in the room, at the start of every deal.

Count it. If it takes you three meetings to reach the decision a competitor reaches in two, that is an extra fortnight per deal and your own hours inside it. Across twenty deals a year, you have spent more than a working month introducing yourself. Apply your charge-out rate to that month. It is the most expensive presentation your business gives, and it gives it over and over.

The discount you keep agreeing to

When a buyer cannot see a meaningful difference between you and the next option, price becomes the tiebreak, and the pressure always travels in one direction.

This one converts to dollars fastest. If you concede five per cent on every second job just to get it signed, that is two and a half per cent of revenue gone straight off the bottom line. For a two million dollar business, fifty thousand dollars a year, conceded quietly, one reasonable-sounding negotiation at a time. Nobody signs off that spend, because it never appears anywhere as a line item.

The enquiries you should never have received

A vague brand attracts everyone, which sounds like reach until you watch what it does to the pipeline. Enquiries arrive from people you are wrong for, at budgets you cannot work with, for jobs you stopped doing years ago. Each one takes a call to qualify, and the plausible ones take a proposal.

Go back through last year’s proposals and sort them honestly into two piles: prospects you were genuinely right for, and prospects who were never going to buy from you at your price. Every document in the second pile cost days of senior time. A sharp brand writes that pile down for you, before anyone picks up the phone.

There is a growth cost hiding in the same place. Binet and Field’s research for the IPA, the UK advertising institute that holds decades of campaign results, found that growth comes mainly from reaching and converting new buyers, at roughly twice the effect of squeezing more from existing ones. Byron Sharp reached the same conclusion in How Brands Grow, from a bigger dataset: brands grow by winning buyers who barely know them. Your existing clients do not need converting; the relationship already did that work. The stranger is the only buyer your brand ever converts, and if it cannot, your growth is capped at the size of your network.

And underneath all of this sits the one cost you cannot count: the enquiries that never came. The buyer who found the website, read for a minute and moved on. The shortlist you were never on, because nothing they saw said you belonged there. The referral your advocate never made, because they were not sure the brand would back them up. Nobody tells you about any of these. The damage happens in silence, in decisions you never hear about, and that silence is probably the biggest number on the page.

The drag inside the building

Some of the cost never touches a prospect at all.

New staff take months longer than they should to explain the business confidently, because there is no settled answer to learn. Proposals get rewritten from scratch each time, because there is no agreed story to build from, so the quality of each pitch depends on who happened to write it. The team argues about design, the website, the deck, the colours, and those arguments run long because they are strategy arguments in disguise. Nobody has decided what the business is, so everybody debates what it should look like.

Each of those is hours, and the hours are usually senior ones.

The innocent explanations

Every sign above has an innocent explanation of its own. The sales cycle is long because the market is slow. Margins are thin because the sector is competitive. The odd enquiries are just the internet doing what it does. Any one of these might be true.

The tell is the cluster. When three or four show up together, they share one upstream cause, and fixing them downstream means pushing harder on a system that is leaking. More leads into a pipeline that mislabels you. Another salesperson delivering an unclear story.

Do the arithmetic

Take your last five deals and count honestly. The extra meetings before you were believed. The discount conceded at the end. The proposals written for people who were never buyers. The hours your team spent re-explaining the business to itself. Multiply by a year. Then treat the total as a floor, because the biggest line item, the enquiries that never came, is the one you cannot fill in.

That number is what “fine” is costing you. Whether it justifies fixing the way your brand shows up in the world is your call. The difference is that you can now make it with a figure instead of a feeling.

Next in Brand, Honestly: what actually happens inside a brand project, how long it takes, and how much of your time it really needs.