Sunday, 17 December 2017

Does the Product Value Lie Inside your Product? | Value Selling

It is assumed that the value perception of a product lies in the product features, workmanship etc. which is proved otherwise in this example.

Recently I was conducting training programs for the Pan-India Sales Team of  Bharat Fritz Werner (BFW). The topic was Effective Value Selling of Capital Equipments. BFW is a renowned manufacturer of Machining Centres, Special Purpose Machines, Turning Cenres, Lathes etc. Murali, one of the Sales Engineers who is an expert in lathes for the last 15 years; narrated an interesting example. While working for Batliboi, his previous company, he used to approach a company called Priyanka Enterprises in Coimbatore. Mr. Ulaganathan who used to make automobile components had upgraded from a normal lathe to a CNC lathe so as to cope with the increased volumes. A sales engineer from a CNC Turninng Company convinced him to go for one.
By his misfortune, the  new machine failed to deliver as per his expectations and Ulaganathan was repenting for having invested Rs. 4 lakhs in the machine. He wrote it off and went back on the manual lathes. When Murali went there to explore new opportunities; he encoutered a hostile client who refused to believe what Murali had to say. However Murali persisted. Almost for six months he followed up with customer. At last looking at his sincerity and perseverance he placed a trial order for a CNC Turning Machine. Murali provided an exceptional service to the clinet.
Over  a period of time the client went on buying 8 such machines from Batliboi through Murali. Being a SME he  had to arrange for funds for this capex from Tamil Nadu Infrastructure Investment Corporation (TIIC) Mr. Ulaganathan was felicitated by TIIC for not only availing the loans, but also for being prompt in repayment of the same.. Mr. Ulaganathan in his acceptance speech attributed his success not only to Ms. Chitra of TIIC who was quite professional in disbursing the loans but also to Mr. Murali who ensured in his commitment in making the customer profitable by supplying good quality machines with exceptional service. Now Murali is with BFW and it is no wonder Mr. Ulaganathan does not mind shifitng his allegiance where Murali is working!
When products are simliar, who is the brand, the company or the salesman?
For more such interesting stories, please refer our Sales Book ,  Contextual Selling (A New Sales Paradigm for 21st Century) by Rajan Parulekar from Paradigm Trainers Pvt Ltd.

For More Details pleses contact us at Paradigm Trainers Pvt Ltd  Email id: Call us: +91-08 2389 7930

Friday, 1 December 2017

Games Customers Play to Extract Maximum Discount

Who is the Managing Director?

Suresh, narrated this interesting episode when he was the Sales-cum-Service engineer working for a  Special Purpose Machine (SPM) manufacturing company in Bangalore. There was an important proposal submitted to a client in Delhi. The vendor from Bangalore did not have any market presence in North India and consequently no sales setup. The customer called the vendor for price negotiations. Suresh was sent to Delhi to close the order.

He landed at the factory and enquired for the concerned Purchase Officer at the reception. It was around 9.30 AM. He was asked to wait in the conference room. Ten minutes later, a man in his early fifties dropped in the cabin.

After exchanging pleasantries, he said, "Tell me, what is the best discount you can offer?"

Suresh: "Sir, the best I can offer is 5%."

Man: " Ok, I will talk to my MD and come back to you. He is a busy man. You may have to wait."

After 2 hours, at around 11 AM, the same man turned up and said, "Our MD says the price is too high. He wants a minimum of 20% discount."

Suresh thought for a while, talked to his boss and offered 10% discount.

The same storyy repeated. The man went back inside and turned up at 12.30 PM.

He said, "Our MD says still the price is high; he wants a minimum of 18% discount."

Now Suresh was in a fix. He could not say 'NO'. He had a clear mandate from his boss that he should collect the order at any cost.

Many such rounds of negotiation continued till 4.00 PM and the man was shuffling in and out of the office.

At last, Suresh was able to close the order by offering 15% discount.

Two monts later, Suresh was deputed to install the machine. 

At the shop-floor, while the installation was going on, Suresh saw the same man from a distance whom he had interacted with two months back.

He asked th Production manager, "By the way, who is that man? Is he the purchase officer? He was the one who was coordinating my proposal with the MD."

The production Manager said, "He is our MD."

For More Details pleses contact us at Paradigm Trainers Pvt Ltd  Call us: +91-08 2389 7930

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