The first step in problem solving of course is to define the problem in customer terms. For example, perhaps you distribute office supplies to small to medium size retailers. Your customer is a regional office supplies retailer who has just opened two new stores , for a total of seven , and invites you to bid on supplying note pads. You have positioned yourself in the market as the supplier who provides solutions, not the one with the low cost products. So you ask a few questions about the supply chain.
You: Who's your internal customer for our note pads?
Customer: The paper supplies manager in each store.
You: What are the challenges they face today?
Customer: Move more product.
You: How are they going to do that?
Customer: Don't know. Got any ideas?
You: a dozen but they are only half baked. What do their customers, the consumers want?
Customer: Low price.
You: I understand that you offer the full range of note pads from the major manufacturers. I'm not interested in getting into a bidding war with my competitors, but I'd like to earn your business.
Customer: Then give me your best price.
You: What if you and I could help your department managers move more product? That's the ultimate goal isn't it? Is that what your performance is measured on?
Customer: Well, yes, and I have to show savings too.
You: So here's my idea. I supply you with note pads that will give your department managers something fresh to promote. I can't guarantee it but they should be able to improve their volume as a result.
Customer: Fine but I have to have low price.
You: Of course. The fresh idea is to put your label on the note pads and sell them as a new, high value, house brand, at a price significantly lower than my competitors. It will create a buzz, and your managers will easily beat their targets. Now to get the low price you have to make a trade off, in this case it will be thinner sheets, but still good quality paper. This solves both problems, right?
Customer: It might. It's worth a shot. What's your price?
You: $XXX, which is about 10% lower than you'll find anywhere. And that's with your brand on the product. Of course you should probably double the quantity, because your managers and your price sensitive customers are going to love it.
Prevent your customer from seeing your product as a commodity - To learn more about this author, visit John Brennan's Website.
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John Brennan
(Visit John's Website)
John Brennan Ed.D.
Dr. Brennan is President of Interpersonal
Development, LLC, a training and
development firm. Interpersonal
Development has provided sales training
and coaching to more than 3,000 sales reps
from over 100 companies.
A native of Australia, Dr. Brennan
received his doctorate from the University
of Rochester. His dissertation researched
the effectiveness of Behavioral Modeling
Technology in training people in
interpersonal skills. While he has spent
most of his career designing or delivering
training, he was also a Vice-President of
Sales of a training and development
franchise with operations in 25 markets.
Dr. Brennan has designed and delivered
sales training in North America, Asia,
Europe, Australia and the Middle East. He
has been a guest speaker at numerous
national and regional professional
conferences.
When Microsoft wanted Best Practices
articles on sales for their web site, they
called Dr. Brennan. The results are at office.microsoft.com/e
n-us/FX011387391033.aspx
His firm’s clients have included Volvo,
The Prudential, Merrill Lynch, Eastman
Kodak, Gannett, Equifax Europe, the
Economist Group and countless small
businesses.
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