Question

In: Economics

Case 1: Machinery Lubricants, Inc. Ralph Jackson sells industrial lubricants to manufacturing plants. The lubricants are...

Case 1: Machinery Lubricants, Inc.
Ralph Jackson sells industrial lubricants to manufacturing plants. The lubricants are used to lubricate the plant’s machinery. Tomorrow, Ralph plans to call on the purchasing agent for Acme Manufacturing Company.
For the past two years, Ralph has been selling Hydraulic Oil 65 in drums to Acme. Ralph’s sales call objective is to persuade Acme to switch from purchasing oil in drums to a bulk oil system. Last year, Acme bought approximately 364 drums or 20,000 gallons at a cost of $1.39 a gallon or $27,800, with a deposit of $20 for each drum. Traditionally, many drums are lost, and one to two gallons of oil may be left in each drum when returned by customers. This is a loss to the company. Ralph wants to sell Acme two 3,000-gallon storage tanks at a cost of $1,700. He has arranged with Pump Supply Company to install the tanks for $1,095. Thus, the total cost of the system will be $2,795. This system reduces the cost of the oil from $1.39 to $1.25 per gallon, which will allow it to pay for itself over time. Other ad- vantages include having fewer orders to process each year, a reduction in storage space, and less handling of the oil by workers.
Question
If you were Ralph, how would you plan the sales call?
Case 2: The Thompson Company
Before making a cold call on the Thompson Company, you did some research on the account. Barbara Thompson is both president and chief purchasing officer. In this dual capacity, she often is so rushed that she is impatient with salespeople. She is known for her habit of quickly turning down the salesperson and shutting off the discussion by turning and walking away. In looking over Thompson’s operation, you notice that the inefficient metal shelving she uses in her warehouse is starting to collapse. Warehouse employees have attempted to remedy the situation by building wooden shelves and reinforcing the weakened metal shelves with lumber. They also have begun stacking boxes on the floor, requiring much more space.
You recognize the importance of getting off to a fast start with Thompson. You must capture her attention and interest quickly or she may not talk with you.
Questions
Which of the following attention-getters would you choose? Why?
1. Ms. Thompson, I’d like to show you how Hercules shelving can save you both time and money. 2. Ms. Thompson, can you spare a few minutes of your time to talk about new shelving for your warehouse?
3. Ms. Thompson, how would you like to double your storage space?
Case 3: Dyno Electric Cart Company
You plan a call-back on Conway Pride and the president of his company to sell them several of your electric carts. The company’s manufacturing plant covers some 200 acres and you have sold up to 10 carts to many companies smaller than this one. Since Pride allows you to meet with his company’s president and maybe other executives, you know he is interested in your carts.
You are determined to make a spellbinding presentation of your product’s benefits using visual
aids and a cart demonstration. Mr. Pride raised several objections on your last presentation that may be restated by other executives. Your challenge is to develop a dramatic, convincing presentation.
Questions
l. You plan to give a cart demonstration to show how effective it is in traveling around the plant. Which of the following is the best technique for the demonstration?
a. Get Pride and the president involved by letting them drive the cart.
b. You drive, letting them ride so they will listen more carefully to you.
c. Leave a demonstrator and check back the next week to see how many they will buy.
2. You also plan to use a 10-page visual presenter to guide them through your benefit story. This selling aid is in a binder and contains photographs of your cart in action, along with its various color options, guarantee, and testimonials. Should you:
a Get Pride to participate by letting him hold it?
b. Handle it yourself, allowing him to watch and listen while you turn the pages and tell your story?

Solutions

Expert Solution

Case 1

If I were Ralph, I would certainly choose the second option accounting for less straining logistics and reduced amount of losses. What Ralph can further do is to have choices for the customers to choose to buy drums or set up storage tank. This ensures that potential customers interested in either choice don't go unnoticed and a profit maximizing state is achieved for Ralph.

Case 2

I would say, we go with the option 1 attention getter. If you consider the other 2 options, they are cliché salesman conversation, and I don't think Barbara isn't going to pay attention for that. With 2 responsibilities at hand, she needs to feel the urgency to listen to you, and what is that urgency? Time and money. In business time is money, and when you pitch in for saving both, you have already grabbed the listeners attention, of which Barbara is no exception. Hence, this is the most apt attention getter one could use.

Case 3

1. In this case, the first option of involving Pride and thr President would do wonders. See, it's simple. You go to a car showroom and listen to all the jargons the sales person throws at you. But what motivates you to buy the car is the experience when you drive, that is the main reason the concept of test drives came into existence. Similarly, when Pride and the president drive the cart and know for themselves how relevant your visual representation of the cart is, they are gonna make a deal. For you've been called as they are interested in your company's electric carts. So, leveraging the importance of user experience in this case is the best way to proceed.

2. Of course, let Pride hold it! Images speak 1000 words and that is best realized when one truly indulges in visualizing the pictures. Make Pride hold the visual presenter and you can make a slow narration as he turns the pages. This way ensures that Pride feels that he is treated with utmost care, and allowing him to participate also encourages him to know more about the cart. All this together ensure that there is a spellbinding presentation overall.

Hope this helps. Do hit the thumbs up. Cheers!


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