Showing posts from 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 inve…

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 …