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
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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!