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."

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