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Please review the attached case and provide answers to the following questions.
1/ What did the first company?s sales rep do correctly?
2/ What did the first company?s sales rep not do correctly during the actual sales call?
3/ What could the rep from the first company learn that would enhance his chances of receiving subsequent orders?
4/ What did the gentleman from the 2nd company not do well and what are the potential implications of this? Consider Features, Advantages and Benefits when answering this question.
5/ What did the gentleman from the 2nd company do well to win me over as well as to create an Advantage for his company?
6/ The son who I talked prices with did exhibit selling skills as we went through the pricing. Explain in detail what he did as part of a selling process to help secure the order.
7/He also helped reassure me about my decision. What was he likely preventing in my thinking as I considered the deal we had made. Why would he have done this ?
8/ Explain in detail why I was prepared to work with the second company to be sure they got the order despite their price being higher than his competition.
9/ What negotiating style did I use? Explain why I used this style.
10/ Where was value created by each company and detail what the value created?
A few years ago our roof started to leak on our home. We called in two wellknown roofing companies to help us understand what the situation was.
The rep from the first company looked at the leak in our living room and
said we needed a new roof. He said it was a 25 year old roof and that it was
typical of what was happening in our subdivision.
The sales rep estimated our roof size as we stood in the front yard and then
quoted me a price. He said he had done a lot of work in our neighbourhood
and then asked if I wished to have the job done offering no more
information.
Once he learned from me that I was waiting for another company to look at
the leak, he said he would follow up in a few days to see if I wanted to have
his company do the work.
The second company arrived later that day. An older gentlemen in a work
truck arrived. I explained the problem we were having and that we had a
leak in our living room. He smiled, grabbed a ladder asking if he could
survey the tiles on the roof. With permission given, he quickly climbed onto
the roof. He walked around on the roof surveying its two levels. When he
came down he explained that the roofing shingles had reached the end of
their life expectancy and that the roof would need to be replaced very soon
as leaks were going to start to be a regular occurrence. He explained that
the shingles had lost their granular integrity and coating which happens
over many years which results in it starting to leak. He also said that there
was a bare spot above the front area of the house. He asked where the
living room was. I replied that it was at the front of the house. The location
of the leak and lack of tiles he had seen matched, resulting in the leak.
He offered to give us a temporary patch and with permission, he proceeded
to grab tools out of his truck along with a couple of shingles over his
shoulder, climbed his ladder onto the roof and started to hammer.
He came down a few minutes later smiling and said that the repair he did
would give us a few weeks on that spot but that further leaks were not going to be long in coming. He advised that based on his experience it
would no more than a month before other leaks would develop.
I thanked him and offered to pay for his service being relieved that the leak
was looked after. He politely declined saying that he was just happy to help
me.
Being impressed by him as well as feeling a sense of obligation to him, I
asked what his company could offer over other competitor?s that had
started doing working in our area. The following conversation then took
place: ?Our employees are long term with our company ?he announced proudly.
?So, what does that mean to me?? I asked
He said ?Well, we know the quality of the work our guys do ?
I said? That doesn?t? necessarily mean it is good quality, just that they have
worked for you for many years?
He then said? Oh but we only keep the best, most reliable workers year
after year?.
?So that means ?.?? was my response.
He went on to say ?The employees that do a particular roof are responsible
for any shingles that come off the houses they work on for at least five
years?.
?So?? I asked.
His response was ?They must come and repair the roofs they have done if
there are any problems.?
? I see? I said. ?Why does that matter to me?? starting to see a pattern in
his sales process. ?They do good work, in part, because they don?t want to be returning to
homes on their time?
He assured me that quality work is their main objective.
I then asked him how long his company had been in business.
He said ? We have been in business since I started the company 40 years
ago and I am proud of this with the roofing business being full of companies
that come and go?
?But that is the nature of your business which makes me think of you as a
more stable company but provides no value for me really? I said.
?Well, I can see that point of view, but you know we will always be there if
you need us?.
?So I can count on you to be there if I need you??
?You got it? he said. Adding ?that the quality of their work in an industry
where there is a lot of turnover is why we keep the same high quality
workers year after year. We see them as a real asset?.
I asked him for a price being sold on him and his company.
He smiled and headed for his truck after giving me his son?s business card
saying
?Give my son a call. He?ll be happy to talk about the quote with you. I am
out of touch on pricing but we are really busy and the feedback he gives me
tells me that we are competitive. I just assess the job and do small repairs.
He?ll have the roof dimensions later today so you can call him tomorrow for
a quote?
?But you didn?t measure for the estimate? I said
He chuckled and replied? I have been doing this work all my life so I can eye
ball dimensions just by being on the roof. I?m never wrong after all these
years. Besides we always bring an extra couple of bundles, just in case. ? I called his son later that day and sure enough, he did have the dimensions
as his father had said he would. I was quoted $3200.00 which was $400.00
more than the competitor?s price. I indicated his price was high to the
competition. He then asked who the competition was. I told him, at which
point he indicated that his company was usually high to this competitor I
had named but there was good reason for this. He went on to tell me that
his company?s business warranty was two years longer than this competitor.
He added that is a recent survey conducted by their trade magazine, his
company had been rated number one for customer satisfaction in the
Greater Toronto Area.
?Our quality of service as provided by our crews with them being long time
employees costs us a little more but is worth it based on our customer?s
satisfaction I hear about with letters from many of them, even years later.
They tell us over and over again that the quality of our work as well as the
professional attitude of our teams and the cleanliness of the site after we
are done, inspire them to write to us.
?I also sleep better at night knowing our customers are pleased.?
Hearing all of this, I was ready to so sign up. I then suggested that we
should find a way to make this work.
?I would like to have you do the work but $400 is close to 15% higher.?
I did add that the service his father had provided was an incentive for me.
He agreed and offered a price reduction of $200.00 and an extended the
full warranty another year on the installation saying that the business is
appreciated and he has no concerns about the quality of the work his
people will do.
?We stand behind our work, so I am able to offer another year? was his
closing statement.
I accepted his offer after a clarification of the details of the warranty. He
then set a date for the work to be done based on my availability and him having his team?s schedule in front of him. He thanked me for the business
assuring me that my satisfaction was his company?s greatest concern. He
promised that his father would follow up with me a week after the work
was completed to be sure that I was satisfied.
The crew that did the work was professional, thorough and cleaned up after
they had finished their work just as I had been promised.
In fact his father did drop by a few days after the work was completed just
to be sure that I was satisfied with all aspects of the job.
The sales rep from the competitor did follow up with me 10 days after the
business had been booked at which time I did tell him that he had lost the
order to a competitor. I could tell from his words and tone that he was not
pleased about not getting the order.
Solution details
Solution #00070207
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DATE ANSWEREDSep 21, 2019
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