Sandbagging Sales - Does It Cause More Harm Than Good?

In the B2B world, sandbagging sales is one of the most controversial topics. Some claim it’s a godsend while others think it can hurt a business in the long run. 

As with other things, the truth probably lies somewhere in the middle - it’s definitely a great way to meet sales quotas but it does have some major drawbacks.

Today, we’ll take a closer look at both sides of the argument to reach a definite conclusion about whether sandbagging sales is the right approach to take.

What Is Sandbagging?

Sandbagging sales is the process in which you postpone a sale until the next fiscal period or month. This flies in the face of the philosophy of most B2B sales reps who usually want to convert a lead and close a sale as soon as possible. 

When sandbagging sales, a rep will drag out the sales process without notifying the customer or the lead. They’ll just try to close the sale next month.

If this is your first time hearing about this, it’s easy to get confused. Why would someone make the sales process longer intentionally? 

To meet their sales quotas.

Since in many B2B companies sales reps have a minimum number of sales they have to meet per month, sandbagging sales makes it a lot easier to do so. Let’s say you have already met your monthly or fiscal quota - you can postpone closing the sale so you can get a head start on meeting the quota next month.

Why Do Sales Reps Sandbag?

Many people sandbag sales because it makes their lives easier. For example, by holding off bigger deals, sales reps may avoid attracting the attention of upper management. This is common with those who hate the extra attention and would rather keep their deals on the down low.

The same principle applies to concealing deals that might inflate expectations. For instance, a sales rep may not have a good feeling about a particular deal. If management finds out about the deal, they’ll probably set too high of an expectation and will expect the deal to close. With sandbagging, it’s possible to keep the expectations low and avoid attention. 

This is a positive for salespeople as it will ensure that their performance seems consistent, and if the deal does close, they can pleasantly surprise the higher-ups.

For others, it’s about motivating themselves by keeping the momentum high in the next quarter. A few solid deals can set a good tone for the next few months. Additionally, this is especially helpful if sales quotas were already met and those few deals in the can will have a larger impact in the future than at the present moment.

Drawbacks Of Sandbagging Sales

Although sandbagging can relieve the pressure for sales reps, in the long run, it may cause more harm than good for the entire business. 

Here’s why:

1. Creates a lack of transparency in the entire sales pipeline

Sandbagging leads to inaccurate sales forecasts and removes any transparency in the sales pipeline. Ultimately, this can have catastrophic consequences on the entire company and lead to inaccurate revenue goals, as well as poor performance. 

According to research, inaccurate sales forecasts can have a negative impact on a business and lead to poor spending decisions. For example, with flawed data, sales leaders may cut out sales initiatives or even implement new measures to boost the numbers without having the right information to support their short-term financial decisions.

Even worse, higher-ups may implement changes that aren’t good for the business as a result of inaccurate sales forecasts. For instance, management may give out a pointless discount simply to hit their target for the quarter without ever needing to do so.

2. It degrades trust 

Sales managers are also hurt by sandbagging sales since they’re the ones who are under constant pressure to come up with accurate forecasts. With frequent inaccuracies, they’ll simply never be unable to provide proper sales targets, and eventually, they’ll attract negative attention from management.

So in one fell swoop, consistent sandbagging will cause tensions and break down the trust between managers and sales reps, along with the relationship between them and the higher-ups. Furthermore, it will hurt the business's bottom line.

3. It loses customers

Worst of all, sandbagging also has a negative impact on the customers and their perceptions of the business. By dragging out active leads, it’s all too easy to create slowdowns which will frustrate even the clients that are hyped about what you’re selling.

Data shows that almost 41% of B2B buyers reported that the slow speed of delivery made them change their minds about completing a purchase.

While sandbagging might seem like a risk-free thing to do, the customer may simply go to a competitor instead of purchasing your product or service.

The Verdict: Sandbagging Is A No-no

In conclusion, you should avoid sandbagging. Understandably so, it’s rampant in the world of B2B sales as everyone tries to meet sales quotas and survive in the process.

Keep in mind that individual sandbagging isn’t that damaging, as a delayed sale once a month probably won’t have any negative effects on the company. But if everyone on the sales team is doing it, it hurts the productivity of the entire team, their numbers, and ultimately, the company’s bottom line.

Depending on the position in your company, the ultimate goal will be different. If you’re a salesperson, by sandbagging, you’re harming your potential.

If you’re a sales manager, you should try your best to monitor, and if possible, stop the practice - or at least keep it to a minimum. Sandbagging is a sign of a dysfunctional sales team, and you should ask yourself the question of why salespeople have the need to delay sales. 

Maybe they believe that the expectations management has of them are unreasonable, in which case you should improve your relationship with your team and open up the lines of communication. 

By having clear communication and reasonable expectations, you can potentially erase the need for sandbagging sales altogether. If you achieve this, your salespeople will love you, and so will upper management.