Introduction
Bob is the vice president of manufacturing for a business that processes, packs, and ships seeds to customers in the lower 48 states. The company has a constraint in the bag and seal area. Bob set up a buying committee consisting of himself and the production, facilities, and purchasing managers, with the CFO in the final decision.
After the committee members researched online and talked to people in the same sector within their network, they developed a shortlist of three companies. Bob offered to meet with representatives of the three companies because his schedule had the most flexibility. The representatives come from these organizations:
- Rep one is from Bob’s current supplier
- Rep two is from an independent sales company that handles two manufacturers that suit Bob’s needs.
- Rep three is from another manufacturer
Here are the key points from each of the three discussions.
1. The Rep from Bob’s Current Supplier
The rep made the appointment with Bob’s buyer. When he arrived at the facility, he called Bob, who met him in the lobby but did not recognize him.
Bob: You do not look familiar. Have you ever been here before today?
Rep: This is my first visit.
Bob: How long have we been your account?
Rep: About 14 months.
Bob: Why have you not been here and introduced yourself to me?
Rep: I was busy getting familiar with other accounts.
Bob: Thanks for your honesty. What would you like to see?
Rep: All I want to do is show you a video of our latest version of your current equipment and learn about your buying process.
Bob took him to purchasing and let the buyer deal with him.
2. The Rep from an Independent Sales Company
The rep called from the lobby and met Bob.
Bob: Have you ever been here?
Rep: Yes. It was before you arrived, and the flow was very confusing.
Bob: Let’s walk around, and you can tell me if it is any better.
Rep: Sounds good.
The discussion continued after they walked around and arrived at the packaging area.
Bob: How did we do?
Rep: It must have been a different facility because this is so well organized and clean.
Bob smiled, and they started talking about their equipment.
Rep: I see you have two Brand X products. They are reliable but have a slow fill and seal rate. Is that why you are considering adding a third machine?
Bob: Correct. What would you do if you were in my shoes?
Rep: Having studied the data I received from purchasing, I recommend you trade in your two Brand X machines and replace them with two of our Brand A products. They are as reliable as your current equipment, and each is 75% faster. So, two new machines will give you the same output as three existing machines in the same floor space. And, with the trade-in, your cost will be about the same as purchasing a third Brand X.
They talked a little more, and when they parted in the lobby, Bob asked him to provide a quotation for his recommendation.
3. The Rep from Another Manufacturer
The rep called when she arrived, and Bob met her in the lobby.
Bob: Have you ever been here before?
Rep: No, but I have researched your company and am anxious to learn more about both.
Bob: We can talk while I show you around if that is OK?
Rep: Absolutely.
She then politely peppered him with well-thought-out questions about him and his business. But it got interesting when they arrived at the packaging area.
Rep: You are packing seeds. Isn’t that seasonal?
Bob: Correct. We pack and ship in a four-to-five-month period, then clean the equipment and don’t use it again for about six months. At our executive committee, we talk about finding other products to pack during all that downtime. However, the change-overs and cleanup will take a bite out of our potential profit, and the equipment must be available for seed packaging since that is our primary business.
Rep: We can help you. Did you see on our website that we offer products on an at-a-service basis?
Bob: I did, but I didn’t understand how it works and how it would help me.
She broke into a big smile.
Rep: Do you have a place where we can sit down, watch a two-minute video, and then run some numbers?
Bob: Yup!
They went into a conference room, and she showed a two-minute video. Afterward, she opened an Excel spreadsheet and typed a bunch of numbers, coming up with a positive return on investment (ROI) from the idea.
She then started explaining the guarantees they provide, the services they can include in the contract, and some case studies from companies like theirs.
Bob called his CFO, and they scheduled a follow-up virtual meeting. After the meeting, they had another meeting with the full committee. They all liked Rep Three’s proposal. The CFO and Bob then scheduled an executive committee meeting. They gave the rep 15 minutes to make the case, and after some discussion, they sent her back to her office to prepare a contract.
Lessons to Be Learned
In General
- Purchasing committees are generally more than 50% of the way through their buying journey before they talk to any sellers.
- Never assume that your website makes everything clear to potential buyers.
From the First Rep
- Never ignore an existing customer for a long time.
- Never assume that just because your customers are not complaining means they will buy from you if they need more products.
- If you are not a consultative seller, you are obsolete
From the Second Rep
- Never assume that you will get the next order just because your product is better than an incumbent’s product.
- Never ignore creative offers from your competition. Always assume they are onto something and may leave you in the dust.
- Being a consultative seller is excellent, but your total offer must be the most compelling one in the marketplace.
From the Third Rep
- Winning orders is because of knowledge, communication, and connecting the dots.
- A compelling story will make even the most conservative industries try new ideas. All it takes is innovation, actual data, and an ROI that the CFO cannot ignore.
- Consultative selling + a full-breath offer = getting the P.O.
Good selling!
Related articles:
- The Difference Between Upselling and Cross-Selling
- Selling Customer Value Turns Your Business Into An Unconquerable Fortress
About Middlesex Consulting
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Image credit: Image by Gerd Altmann from Pixabay