Question

In: Operations Management

Situation: Read Case 8; Thompson Engineering Characters: Tyler Houston, sales representative; Tom Harris, senior buyer Scene...

  • Situation: Read Case 8; Thompson Engineering

  • Characters: Tyler Houston, sales representative; Tom Harris, senior buyer

  • Scene 1:

    Location—Harris’ office

  • Action—Harris has just stated that he needs a couple of weeks to go over Houston’s proposal.

    Role play how Houston should respond to Harris’ needing two weeks to think it over.

  • Scene 2:

    Location—Harris’ office

  • Action—Houston is summarizing his product’s advantages (i.e., price, quality, service).

    Role play Houston’s summary and his asking for the order.

    Upon completion of the role plays, address the following questions:

  1. Why do buyers hesitate and ask for more time to think over proposals?

  2. How hard should Houston press to get Harris to act now?

Solutions

Expert Solution

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Why do buyers hesitate and ask for more time to think over proposals?

There are several reasons why buyers hesitate and ask for more time to think things over. Some common reasons include: the desire for the client to avoid the sales interview, failure of the salesperson to prospect and qualify properly, observation of customary procedures, the resistance to change, the lack of sales need recognition, and the lack of information. Some prospective buyers do not have time for a sales call, sales presentation, or other meetings to cover products and etc. They would must rather have information provided to them which can be reviewed upon their own convenience. If the salesperson provides accurate, timely, and relevant information to the prospective client there is a greater chance of sale. Buyers want real information in real time! While some companies make it customary to time object sales, there is generally reason behind the decision. Generally it is to gain trust and gain a better understanding of the salesperson’s persistence. By identifying and addressing all the buyer needs, even when time objections are present, buyers can review the information and gain knowledge and understanding of your products.

How hard should Houston press to get Harris to act now?

I do not think that Houston should press too hard to get Harris to act now. I think that pressing Harris to act now would ruin the sale. Houston has been working on getting a sale from Harris for two years. Since he has been working such as long time to gain a sale, I do not think that there is a great need to be pushy to get a decision made quicker than Harris is ready to make. Since Houston has also been able to gain rapport and trust in his products from the Hudson engineers, it would be best to allow time for decision making and trust building. Houston should press and remain firm but not in such a manner that it turns off the customer. It is important that the customer feels confident in the decision and that they do not feel pushed or rushed. In our office, we typically use the rule of asking each question three times if we do not get theanswer that we are looking for. For example, when we are doing cold calls wewill ask to quote a lead three times before ending the call. That way they have to say no in a few different ways and you know that it is best to follow up at a later date.

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