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ADDING VALUE - BRINGING VALUE

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ADDING VALUE - BRINGING VALUE A Presentation from (your name) to (principal s name) The pressure is on Everyone wants to add value Everyone wants to reduce cost ... – PowerPoint PPT presentation

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Title: ADDING VALUE - BRINGING VALUE


1
ADDING VALUE - BRINGING VALUE
  • A Presentation from
  • (your name)
  • to (principals name)

2
The pressure is on
  • Everyone wants to add value
  • Everyone wants to reduce cost
  • Everyone wants to become more effective and
    efficient
  • Our customers solution is not the way!

3
Responding to the current challenge
  • You have to take their request to deal direct
    seriously
  • You have to act in the best interest of your
    company
  • Giving in to the request is not in the best
    interest of your company, nor of theirs!

4
What we all have to do
  • Provide a better product
  • Bring more value for less cost
  • Solve problems, present solutions Communicate how
    what we offer solves the customers problem
  • Put the most competent, best motivated
    salespeople on their account

5
Serving the customer at their locations
  • A cost of doing business, not an option
  • How to pay for it is an option -- payroll or
    outsource

6
Why you made your decision to outsource
  • Better market penetration
  • Solutions selling through product synergies
  • Predetermined sales cost that goes up and down
    with sales
  • More feet on the street
  • No cost until there is a sale

7
Should outsiders second-guess your decision?
  • You chose reps as your solution to
    cost-effectiveness
  • We are not an added cost, but an alternate method
    of field sales compensation
  • You chose reps to field more and better
    salespeople, and serve your customers better, at
    less expense

8
Dollars and sense reasons for outsourcing field
sales
  • You pay only for results, not for effort
  • Your costs are predictable, and go up and down
    with sales
  • You have no sales expenses during the long
    nurturing process
  • You save on overhead - offices, automobiles,
    computers, benefits

9
More dollars and sense
  • You eliminate the soft costs of administration
    and managing people
  • You avoid legal exposures and expenses of
    compliance with local laws and regulations
  • You have to train only on product
  • You get more feet on the street
  • You get more skills and experience

10
Your advantages continue
  • You get a more stable sales force, who are not
    looking for promotion to another territory or the
    home office
  • You get better market intelligence through our
    multiple exposures
  • You get better penetration with people and
    departments that a single-product sales force
    might not be calling on

11
And thats not all!
  • You offer the customer a systems solution, based
    on our knowledge of the other products they need
  • You get more product exposures, through more
    people presenting your line

12
What the customer loses if you go direct
13
The customer forfeits
  • The efficiency and time savings of a
    multiple-line call
  • The established stable relationship with someone
    who already knows both corporate cultures - yours
    and theirs
  • The reps ability to bridge inter-departmental
    communications gaps

14
More customer benefits
  • Our long-term commitment to the territory and to
    them, based on all the products we offer
  • Our ability to be more objective in advocating
    for them to you
  • Our consultative approach and systems solutions

15
Why the customers reasoning is fallacious
16
They misunderstand the reps function
  • We are NOT a channel intermediary adding cost
    without value, we are YOUR sales force, simply
    paid on a different basis
  • We do not take possession, nor mark up price
  • We are not a barrier to communication, we are a
    facilitator of communication, reaching higher and
    wider in both companies

17
Have EDI and the Internet obsoleted us?
  • On the contrary, they add to our value,
    handling routine so we are more productive
  • EDI facilitates tracking, re-orders for current
    products, but NOT technology introduction
  • It cant train customer personnel, help
    negotiate contracts, analyze alternate solutions,
    nor deal with exceptions

18
High tech cant replace high touch!
19
Will eliminating the rep eliminate the reps
commission?
  • Youll have added cost, not less cost, because of
    higher overhead factors and the need to take on
    soft costs we now assume
  • You chose the rep route for economic reasons -
    and you know the economics of your company better
    than the customer does

20
Will using direct employees give you more control?
  • The important thing is results, not control
  • Todays focus on core competencies leads to
    outsourcing
  • They outsource many functions for best results
    -- why shouldnt you?

21
Wont your direct salesperson have more product
knowledge?
  • Products dont exist in a vacuum -- the multiple
    line rep focuses on the product being designed,
    and on its whole bill of materials
  • Reps relate the specific need to the total
    situation, and bring a solutions approach
    involving related products
  • Reps access answers from many sources

22
This is not about US
  • This is about the value YOU provide, with our
    involvement, to our mutual customer

23
They have the right to run their business
  • But not yours!

24
You made a good decision to control costs and
bring value to the customer by outsourcing
  • Stick to your guns!
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