Sales Sandbagging: What Is It and Why It’s Hurting Your Pipeline
Sales sandbagging is deliberately lowballing one’s sales forecast to make it seem like they outperform their targets when they eventually reach their sales goals.
Why do some sales rep sandbag in sales?
Every sales rep wants to crush their quota, and sandbagging is one commonly used strategy. It’s a practice of underpromising and overdelivering on sales goals.
There are a few reasons why sales reps may be tempted to sandbag their sales numbers. It can make them look like they overperformed when they eventually achieve their targets. And it can help to protect them from unrealistic forecast expectations from their managers.
However, there are a few reasons sales reps should avoid sandbagging sales. It can create tension and mistrust between the sales rep and their manager. Sandbagging sales can backfire if the sales rep does not reach their sales goals, as they will set themselves up for disappointment.
This blog will explain sales sandbagging, the reasons for and against the practice, and how to respond.
What is sales sandbagging?
Sales sandbagging is when sales reps hold back deals to lower their forecast and underpromise on expectations. Sales reps intentionally postpone a deal until the following month or fiscal period to give the impression of overachieving.
In B2B sales, you want deals to move quickly and convert to close. But sandbagging can prevent a deal from moving quickly.
When sales sandbagging, reps either underreport their forecast, lower the probability of a deal closing, delay a sales cycle and reduce sales velocity.
For example, you have a deal forecasted to close in February, but you’ve prolonged the sales cycle and asked the customer to sign in March. You’ve decided to sandbag the deal to get a quick start to the following month’s goal.
Here’s another example, you have a $50,000 deal, but you’ve decided to lower the amount to $45,000 to lowball the potential amount of the deal. When it closes, you look great for increasing the deal size.
Although it may seem harmless to meet targets, sales sandbagging can be detrimental to sales reps, their manager, and their company.
Reasons to sandbag
If you manage sales reps, you’ve probably seen sales sandbagging firsthand.
It’s a common practice amongst sales teams when used sparingly. It can get you and your sales team into trouble if you’re too aggressive with the technique or use it too often.
Here are three main reasons sales reps will choose to sandbag in sales.
1. Avoid unrealistic expectations
First, sales reps may sandbag their sales numbers to avoid unrealistic expectations. If they give a higher number, they risk being held accountable for failing to meet an unattainable goal.
2. Reduce unnecessary attention
Second, sales reps may be trying to protect themselves from being taken advantage of by their managers. If their managers know they have a strong sales pipeline, they may be more likely to assign them additional tasks or pressure them to close deals quickly.
3. Start strong in the next month
Third, sales reps want a headstart in the next month or fiscal period. They will push out one or two deals to start strong. But you’ll leave a bad impression if your current quarter isn’t performing well.
Sales reps may simply be trying to avoid the stress and anxiety of being held accountable for their sales numbers. Although there are benefits, sandbagging can significantly impact a company’s sales numbers and should be used sparingly.
Reasons to avoid sandbagging
On the opposite side, there are several reasons to avoid sandbagging in sales.
For example, when sales reps create a habit of sandbagging, your pipeline visibility and CRM quality decline and create several issues.
1. Lack of pipeline visibility
Sandbagging creates difficulties in providing an accurate and up-to-date forecast. Accurate forecasting impacts your sales manager and your company’s operating plan. Hiring, new product development, and resource allocation can be negatively impacted due to sandbagging.
2. The deal can fall through
If sales reps book a deal for a future period, there’s a chance that the deal could fall through altogether. When sales cycles are delayed, it opens up chances for there to be a risk. A delayed deal may also be in the customer’s best interest since they already have a set timeline.
3. Creates distrust
If a sales manager finds out that their sales reps are sandbagging sales, it could create distrust and damage their relationship. Software like CRMs can provide accurate forecasting and hold sales teams accountable. When there are discrepancies between what a rep does and what’s happening in a deal, then it can raise difficult questions for the sales rep to answer
How to spot sandbagging in action
Sales sandbagging can create tension and mistrust between the sales rep and their manager and can backfire if they are too outlandish with their approach.
If you are a sales manager and suspect that one of your sales reps is sandbagging their sales numbers, you can do a few things in response.
You’ll need to review deals in your CRM and review which stage they are in the sales process and when they’ve set to closed won.
Drill down into each opportunity within your pipeline and review the deal history. There will likely be enough deal activity to determine if it’s a case of sandbagging or not.
For example, look through how many days each deal has spent in each stage. Benchmark it against your average sales cycle to see if any lengths of time are off.
To prevent future sandbagging in sales, ensure your CRM has accurate data. Here are several items to review:
- Solidify closed won dates for opportunities
- Identify deals that haven’t gone through the entire sales process
- Check sales activities
- Review sales call plans along with reps
- Review mutual action plans
How to respond to sales sandbagging
As a sales manager, you should build a strong awareness of your sales rep’s behaviors and tendencies. Get crystal clear on the data and sales numbers in your team’s pipeline as well.
Firstly, speak with the sales rep to see if they are deliberately lowballing their forecast. Work with them to fully understand their sales forecast and reasonable expectations. Walk through their deals to understand the business challenges, sales stage, and deal size.
If the sales rep is not meeting their sales goals, work with them to create a more realistic and achievable forecast.
Use software to have clear visibility into your pipeline. You’ll want to see how deals progress through each stage and what activities are associated with each deal. If you have sales call recording software, listen to a few calls to hear what’s happening in each meeting. See if the customer has discussed pricing or a timeline.
Final thoughts on sandbagging sales
Sales sandbagging is something that sales reps do to underpromise and overdeliver on goals and expectations.
Although there are some benefits to the technique, such as expectation setting and starting the next following period strong, there are many more negative outcomes.
Sales sandbagging can backfire if the sales rep does not reach their sales goals. Creating inaccurate sales numbers is not beneficial because it can hurt your deals and productivity.
