Selling Services

1
Selling Services
2
Objectives

• After you complete this training program, you
  will be able to
• Use questioning techniques to build rapport and
  acquire information.
• Handle objections.
• Identify the SPICES or purchasing motivators of
  individuals.
• Identify the roles in the Decision Making Unit.
• Identify the positions in the Socio Dynamic Grid.
• Identify the value that Kodak adds to the
  clients business.

3
KODAK Motion Picture Services

• Kodak provides a range of professional support
  services for the creation, manipulation,
  distribution, exhibition, content management, and
  restoration of multimedia content in the motion
  imaging industry.

4
Handling Objections

• Objectives
• You will be able to
• Use the 7-step system to handle objections.
• Handle common objections to selling services.

5
Handling Objections

• Handling objections is the most delicate time in
  the sale, demanding grace and skill.
• To be prepared to handle any objection, make a
  list of every one you've ever heard.
• Outline how you can use those objections as
  selling opportunities.

6
Objections

• I purchase billions of linear feet of film from
  you. I deserve recognition for being a highly
  valued customer, and expect you to provide
  additional services to me as a result.
• Why is Kodak interested in offering paid services
  now?
• What about all the favors Ive done for Kodak?
• Kodak has major market share and should support
  the industry.
• Now that I have to pay for services, by what
  percentage will Kodak be reducing its film price?
• Why pass the cost to me when its really the end
  user that gets the benefit?
• I cant afford it.

7
7-Step System for Handling Objections

• Whatever you are selling, and however you sell,
  there will be times when your clients raise
  objections.
• There will be reasons why they don't want to buy
  from you. Lets take a look at how you can turn
  almost any objection into a golden opportunity.
• Let's look at a very simple, but highly
  effective, 7-step system for transforming
  objections into opportunity and eventually money.

8
7-Step System for Handling Objections

• Hear them out.
• Don't assume that just because you've heard
  every objection under the sun that you don't need
  listen fully to your client's objection. He may
  have a unique twist.
• You must completely focus on the client to
  determine the real significance of this
  objection. Clients are tired of salespeople who
  only pretend to listen, and are angered by
  salespeople who interrupt their objections to
  refute them.
• These behaviors are disrespectful and
  demonstrate weakness. Be confident, and show your
  concern for their feelings.

9
7-Step System for Handling Objections

• 2. Consider your options.
• As you are listening, you can begin to consider
  your initial strategy to minimize, ignore or
  handle the objection. There are times, especially
  when hearing knee-jerk objections, you will want
  to ignore the objections and keep on selling.
• There are times when you will know that you
  cannot overcome the objection, but can minimize
  its importance in the overall picture.
• For instance, the objection may be that you have
  higher prices than your competitor.

10
7-Step System for Handling Objections

• 3. Restate the objection.
• By restating or paraphrasing the objection, you
  show your concern for the prospect and get
  clarification in case you misunderstood his
  point. It also buys you useful thinking time.
  Some prospects even withdraw their objections
  once they hear them spoken aloud.
• Paraphrasing the objection can provide you with
  a platform from which you can better answer the
  objection.
• For instance, if a client says, "Your prices are
  too high," you may respond by saying, "If I
  understand you correctly, you are concerned about
  receiving sufficient value on your investment?"
  Now, instead of dealing with the issue of price,
  you can sell the value and benefits of your
  service.

11
7-Step System for Handling Objections

• 4. Question the objection.
• If appropriate, ask the client to elaborate on
  his point.
• You not only gain some valuable time, but
  during the discussion you may hear the answer to
  your problem. You will often find that the client
  did not understand a specific point, or that you
  did not communicate it properly.
• If you don't clear this up, the client will
  hold onto his objection and you will lose the
  sale.

12
7-Step System for Handling Objections

• 5. Answer the objection.
• Many salespeople skip steps one through four
  and immediately answer the objection. However, by
  completing the first four steps, you gain an
  understanding of your client's point of view and
  also earn his trust, enabling you to choose the
  most meaningful information for this prospect.
• Because you have been willing to listen to him,
  he is more likely to now listen to you.

13
7-Step System for Handling Objections

• 6. Confirm the answer.
• Once you have handled his objection, check in
  with the client to make sure your response
  satisfies his concern. "That clarifies the point,
  doesn't it?" or "With that question solved, we
  can go ahead, don't you agree?"
• If the client says yes, you can lead to a
  close. If the client doesn't feel that his
  objection has been dispelled, you have some
  choices.
• You can explore the objection further, you can
  see what else is on his mind, or if there are
  other, unstated objections in the way.
• You might ask a "what if" question such as, "If
  I could show you that the ., would you ..?"
  If the client says yes, you have targeted the
  true objection. If the client says he isn't sure,
  then you still need to pinpoint the real problem.
  Or, he may now bring up his real objection.
• Your other choice is to point out to the client
  that even given his objection, the other benefits
  of . outweigh it.

14
7-Step System for Handling Objections

• 7. Sell benefits and lead into the close.
• Once the objections have been handled, review
  the major benefits for your client, and bridge to
  a close. Now that you have uncovered the client's
  needs, presented the value of our service
  offering, demonstrated how our service can meet
  those needs and set to rest any objections or
  concerns, closing the sale is the natural outcome
  of all that has come before.
• Ask for the order simply and directly.

15
Common Objections to Selling Services and
Suggested Responses

• I purchase billions of linear feet of film from
  you. I deserve recognition for being a highly
  valued customer, and I expect you to provide
  additional services to me as a result.
• Ask what kind of service the client expects.
• Then ask what effect that would have on Kodak
  and proceed to explain why we cannot do this.

16
Common Objections to Selling Services and
Suggested Responses

• Why is Kodak interested in offering paid
  services now?
• Ask the client what value they think Kodak
  currently adds to their business.
• Think of the additional services already offered.

17
Common Objections to Selling Services and
Suggested Responses

• What about all the favors I have done for
  Kodak?
• Ask the client why they think these favors have
  been done, and if they feel that these favors
  have never been reciprocated.

18
Common Objections to Selling Services and
Suggested Responses

• Kodak has a major market share and should
  support the industry.
• Ask the client how Kodak should support the
  industry, and what effect that would have on
  Kodaks market share.

19
Common Objections to Selling Services and
Suggested Responses

• Now that I have to pay for services, by what
  percentage will Kodak be reducing its film
  price?
• Just say No.

20
Common Objections to Selling Services and
Suggested Responses

• Why pass the cost on to me when it is really
  the end user that gets the benefit?
• Ask the client why they think the end user has
  the benefit, and how they think this affects
  their own business.

21
Common Objections to Selling Services and
Suggested Responses

• I cannot afford it.
• Ask Is that over budget, or do you not see the
  value?

22
Three Key Points

• There are three key points to remember when
  handling objections
• The client is not arguing, they need satisfaction
  on a point that is bothering them.
• The client will buy from you, if you satisfy this
  point. For this reason, objections are a good
  thing.
• You need to get to the bottom of the issue before
  offering a solution. Understanding and a keen
  interest in the client are the keys to this
  success.

23
Questioning Techniques

• Objectives
• You will be able to create and know when to use
• Open questions
• Probing questions
• Closed questions
• Check questions

24
The Questioning Funnel

• Open
• Probing
• Closed
• Check
• Summary

OPEN QUESTIONS
GENERAL INFORMATION
PROBING QUESTIONS
SPECIFIC INFORMATION
CLOSED QUESTIONS
FACTS, NEEDS
CHECK QUESTIONS
CONFIRM
NEEDS
SUMMARY
25
The Questioning Funnel

• Four types of questions
• Open
• Probing
• Closed
• Check

26
Open Questions

• Questions which obtain information are termed
  "open" questions, and normally start with
• Who
• What
• When
• Where
• Why
• Which
• How

27
Open Questions

• Open questions
• Descriptive answers
• Non-intrusive
• Opinions and feelings
• Give control of conversation to client

28
Examples of Open Questions

• What factors would you take into account if you
  were considering whether to?
• What is your understanding about the benefits
  of?

29
Probing Questions

• Probing questions create meaningful specific
  answers and are best derived from the answers you
  receive from open questions.
• Probing questions start with
• Who
• What
• When
• Where
• Why
• Which
• How
• Tell me about
• Share your ideas

30
Probing Questions

• Create specifics about a clients situation.

31
Examples of Probing Questions

• What are your thoughts about how we could ...?
• What else is on your mind about ... ?
• Why is it important to you that?

32
Closed Questions

• A closed question can be answered with either a
  single word or a short phrase.
• A closed question is easily recognized because it
  starts with words or phrases like
• Do...
• Does
• Is...
• Are
• Can...
• Could
• Will...
• Would...
• Shall...
• Should...

33
Closed Questions

• Closed questions
• Give you facts
• Easy and quick to answer
• Keep control of conversation

34
Examples of Closed Questions

• What results did you get?
• Who was your purchasing agent?
• Where is the closest processing lab?

35
Check Questions

• Check questions allow you to clarify your
  understanding of a conversation.
• Use the phrases
• Tell me more about ...
• What are your thoughts about how we could ...
• Can you elaborate on that a bit more ...
• What did you mean when you said ...
• I'm confused. What do you mean by....
• Can you please give me some examples of ...
• What else is on your mind about ...
• What do you see as the pros and cons of ...

36
Check Questions

• Check questions
• One possible answer
• After rapport is built
• Have closing the sale benefits
• Help you determine the commitment to buy

37
Examples of Check Questions

• "If I have it right, you are suggesting that....
  Is that right?
• If we can .. for you, then youll . for us?

38
Summary

• Your ability to question determines your
  success in sales. Remember to keep your
  questions open-ended and give the power of
  talking to your client. The time to use
  close-ended questions is when rapport has been
  built and you are diagnosing a situation.
• Before every telephone call or meeting, decide
  what information you need to receive from your
  client. If you get lost for open-ended
  questions, try starting a question with Tell me
  about and follow it up with any pertinent idea
  related to the call.

39
Self-Check Quiz 1

• What products did you use?
• This is an example of a(n)
• 1.       Open Question
• 2.       Probing Question
• 3.       Closed Question
• 4.       Check Question

40
Self-Check Quiz 2

• Why do you think this process wouldnt work for
  you?
• This is an example of a(n)
• 1.       Open Question
• 2.       Probing Question
• 3.       Closed Question
• 4.       Check Question

41
Self-Check Quiz 3

• Most of your support comes from your reps then?
  Do I have that right?
• This is an example of a(n)
• 1.       Open Question
• 2.       Probing Question
• 3.       Closed Question
• 4.       Check Question

42
Self-Check Quiz 4

• How are you dealing with that situation now?
• This is an example of a(n)
• 1.       Open Question
• 2.       Probing Question
• 3.       Closed Question
• 4.       Check Question

43
Understanding Your Client

• Objectives
• You will be able to
• Identify the SPICES or purchasing motivators of
  individuals.
• Identify the roles in the Decision Making Unit.
• Identify the positions in the Socio Dynamic Grid.
• Identify the value that Kodak adds to the
  clients business.

44
Hierarchy of Customer Business Needs
Example Segment Retailers
broad needs
45
Decision Making Unit

• Knowing who to talk to
• Who makes and influences the purchase decision?
• What is their weight of importance in the
  process?
• Which of your contacts might be obstructive?
  Why?
• How do you deal with the various contacts?
• How can we mobilize our allies to work on our
  behalf?
• What arguments do you put forth?
• What are the politics and rivalries within the
  Decision Making Unit?

46
Missions Within the DMU

• Decision Maker
• Rubber Stamper
• User
• Influencer
• Director of Finance
• Remember the DRUID!

47
Decision Maker

• This person usually has the most weight in the
  decision, however, not always.
• They will take the credit for the good decisions
  and the blame for the poor ones, so they have a
  real personal investment.
• They stand on the decision, and usually give the
  final nod but only after listening to many
  advisors.

48
Rubber Stamper

• This person usually has some specific list of
  criteria to follow.
• This criteria could be personal, legal, economic
  or industrial.
• So long as the main criteria are met, they will
  agree to the proposal.
• For this reason, we need to know their criteria.

49
User

• This person actually uses the service, so their
  needs could be more aesthetically based.
• We need a relationship with this person in order
  to get them on our side.

50
Influencer

• A difficult one!
• This person could be anybody, the secretary, the
  accountant, a friend of the CEO, anyone who has
  influence over the DMU.
• They are difficult to identify, however, we must
  try.

51
Director of Finance

• The person with the money.
• The person who knows the budget.
• They do not necessarily sign the check.
• They will be involved in the process from the
  start find out their budget.

52
Points To Remember

• One person could have more than one role.
• You may not at first meet the whole group.
• You need to ask questions to evaluate the roles.

53
The Socio Dynamic Analysis

• It is designed to measure the energy spent by a
  person or a group of people towards a specific
  project/ relationship with a third party.
• This tool allows you to structure the perception
  of the different people involved, classifying
  them into different categories.
• Each category can then be studied and treated
  distinctly.
• When applied to analyze the influence and
  decision group of a prospect or a current client,
  it enables you to make the appropriate decisions
  in order to strengthen the clients key
  decision-makers ability to support you as a
  potential supplier.

54
X-axis Antagonism / Hostility

Action degree of intent
Maximum resistance
Min resistance
- 1
- 2
- 3
- 4
Attitude Degree of Antagonism towards
relationship
55
Y- axis Measuring Intent
56
The Socio Dynamic Grid
Action degree of intent
4
3
2
1
- 1
- 2
- 3
- 4
Conciliatory
Challenging
Opposing
Irreconcilable
57
Defining the Groups
Action degree of intent
58
Strategies by Group
Action degree of intent
59
Strategies by Group
Action degree of intent to act
Obstructive
Committed
4
In alignment
In agreement
Torn
Supportive
3
Interested
2
Moaners
Disassociated
1
Passive
- 1
- 2
- 3
- 4
Attitude Degree of Antagonism towards
relationship
60
Motivation of Buyers Affect Needs-Based Decisions

• Security
• Pride
• Innovation
• Customer Service
• Economy
• Sympathy

61
Individual Needs / Motivations

• Everyone will have a primary need / motivation,
  and most will have a secondary need / motivation
• In some cases there can be a third
• These needs / motivations CAN be influenced by a
  skilled sales person, if they can provide very
  specific features, proofs and benefits to the
  client
• Prepare your solution with cast iron benefits
  related to the primary and secondary client needs
  / motivations, to truly tailor your approach to
  each individual.

62
Feature
Proof
Need
Benefit
Trust, quality, safety Expertise, warranty
Security
Association, company Being first
Pride
Leading, different, New, creative
So what?.This Means to you
What sets it apart? Accreditation?
Innovation
Service, technical support, Contact, network,
convenience
Customer Care
NB the decision will also be based
upon Capability Fit Perceived RiskValue /
Relationship
Cost, value, return Profit, rebate etc
Economy
Causes, environment, culture, alignment,
relationships
Sympathy
63
Know the Value Proposition

• A value proposition is a clear, concise,
  statement of the key benefits valued by and
  delivered to a targeted group of clients or
  end-users.

64
Know the Value Proposition

• The initial offering includes products and
  services that maintain and improve performances
  in quality, productivity, and Health, Safety, and
  Environment (HSE) as well as training courses.
•  
• Kodak provides a range of professional support
  services for the creation, manipulation,
  distribution, exhibition, content management, and
  restoration of multimedia content in the motion
  imaging industry
• Co-branding and partnering with OEMs associated
  with the motion imaging industry are being
  explored to deliver Kodak certified services.
• These services are offered as fee-based service,
  part of a contract or warranty, or as credit in
  kind.

65
Know the Value Proposition

• To build a market-focused organization, we need
  to apply the three main components of a viable
  value proposition
• Value to Clients
• Value to Specific Clients
• Value Compared to Competitors
• Developed by Dr. Lynn Phillips, architect of the
  Value Delivery System

66
Know the Value Proposition

• 1. Value to Clients
• First, a value proposition should be developed
  for the needs of our clients not for the
  features of our products or services.
•  
• Remember that value exists, only if the client
  sees it. Put yourselves in the position of the
  client. Think how they would experience the value
  proposition you are presenting.

67
Know the Value Proposition

• Value to Specific Client
• Next, a winning value proposition is the value a
  business intends to deliver to its target
  clients.
•  
• What value are we delivering for each segment of
  our market?

68
Know the Value Proposition

• Value Compared to Competitors
• Finally, value propositions should be compared
  to competitive offers.

69
Know the Value Proposition

• Leverage Kodaks Values
• Brand Name
• Infrastructure
• Technical Strength
• Worldwide Field Force

70
Know the Value Proposition

• Competitive Differentiators
• Knowledge of clients business
• Knowledge of images
• Technical expertise
• Geographic presence
• Broad range of services available

71
Know the Value Proposition

• Value Proposition Checklist
•  
• State benefits in terms of quality.
• State benefits in terms of quantity.
• State the time frame in which the client will
  begin to experience benefits.

72
Know the Value Proposition

• Ineffective Value Proposition
• The Lawn Mob provides fertilizing and insect
  control services.
•  
• Value Proposition Checklist
• State benefits in terms of quality
• State benefits in terms of quantity.
• State the time frame in which the client will
  begin to experience benefits.

73
Know the Value Proposition

• Effective Value Proposition
• Grass Cutters, Inc will provide a monthly
  fertilizing and insect control service that will
  build a healthy and lush green lawn within the
  first year of the service that is priced 20 less
  than other local companies.
•  
• Value Proposition Checklist
•          State benefits in terms of quality
•          State benefits in terms of quantity.
•          State the time frame in which the
  client will begin to experience benefits.

74
Know the Value Proposition

• After the sale is made, each time you deliver
  service, you need to show the value of the
  services provided. Show your client how you are
  meeting the services stated in the contract.
• And whenever possible show how you are delivering
  more than the client expects.

75
Case Study - The Situation

•  You are the new commercial representative of a
  medium / small country in Europe in fact, you
  arrived one year ago.
• The time is right to renegotiate the contract
  (existing contract has been running for 2 years)
  with the only lab in your country.
• For several reasons, such as the market
  situation, actors strike, tax shelters that have
  been stopped and then re-launched by the local
  government, and actions from your competitors,
  the existing agreement has not been respected.

76
Case Study - Client Overview

• This laboratory is involved in traditional
  business and developing himself in the digital
  world the lab manages his traditional business
  for cash, while the digital arm is managed for
  growth.

77
Case Study - Opportunity Profile

• Feature filmsProduction is around 40 films per
  year, but can increase to 50 or 60 as American
  film studios often choose to come to the country,
  at short notice, to take advantage of the tax
  shelters.
• Commercials Dynamic country for commercials
  approximately 600 per year.
• TV Around 200 episodes of TV dramas are
  produced each year.

78
Case Study - Opportunity Profile (continued)

•  During the last 4 months, you have noted the
  following key elements that will influence your
  renegotiation
• The lab is uses nearly 80 Agfa prints (Kodak
  rarely)
• Production companies have complained about the
  quality of the prints, but they know this is the
  only print lab in the country.
• They use generally the following combinations
  internegative on Fuji and interpositive on Kodak.
• Some commercial and feature production companies
  have moved to another country to take advantage
  of better lab quality and costs. You are also
  aware that in some countries there are better
  prices for Kodak solutions.
• The lab is also experiencing increased
  competition from external labs at the front end
  negative processing.
• All of these elements result in lower volume year
  on year, and price pressure from the customers.

79
Case Study - Opportunity Profile (continued)

•  You know their expectations of the renegotiation
  are very high
• Better price and better payment terms.
• Support to acquire volume from some smaller labs
  and from independent distributors.
• Free technical support to raise productivity and
  lower cost.

80
Case Study - Opportunity Profile (continued)

• Kodak is interested in maintaining a presence in
  the country because
• They have relationships across all market areas
  as they are the last print lab in the country,
  and would be a preferred Kodak partner if Kodak
  could secure the business.
• The Kodak strategy is to maintain some local lab
  partnerships to avoid having to exclusively deal
  with very large worldwide labs in the future.

81
Case Study - Competitive Situation

• Despite the fact you are a strong leader on the
  productions market, Kodak is seen as expensive.
• You have gained some business but it has not
  always been 100 Kodak, you have been pressured
  on price and never seem to be able to do enough,
  and the competition seems to be more flexible on
  price and logistic considerations.
• Fuji is not very active in the market, but offers
  better prices than you do. The regular
  combination intermediates Fuji /Kodak works
  pretty well.
• Agfa is cheaper than Kodak and has established a
  good, solid relationship within this company.
  Though technically there is not much support, you
  feel that overall they have done a fairly good
  job.
• You feel there may be an opportunity to develop
  your relationship into a more consultative
  approach long term.

82
Case Study - The People

• Mike Procter is the manager of the company. He is
  under pressure as the company has experienced
  declining volumes over the past 3 years.
• He is seriously considering becoming a front-end
  focused lab with focus also on some niche areas
  they have a very profitable restoration structure
  for the archives. He is also considering as an
  alternative repositioning the lab to acquire some
  international independent distributors.
• The manager is willing to secure and grow its
  front-end activity (traditional and digital)
  while optimizing and being recognized as a key
  player in his geography for release printing. He
  is a recognized partner of the industry, and aims
  at having a sustainable business
• The company employs 130 people. Whatever the
  direction for the business, the manager will lay
  off some staff from the print department within
  the next 30 days you are therefore negotiating
  in tough atmosphere.
• The manager is emotional and treats his employees
  like family. During some meetings you have had
  with him, you felt he was very embarrassed and
  concerned when faced with some difficult
  decisions. Although he has headed up the company
  for years, he will not take any decision without
  consulting his technical manager.

83
Case Study - The People (continued)

• Marlene Boyce is the financial manager. She does
  not have a strong background in this industry.
  She is unemotional and will make quick decisions
  that are right for the business. The company is
  not a situation where she can afford to make it
  into a charity.

84
Case Study - The People (continued)

• Jim Burn is the contact man who looks after
  front-end customers and is responsible for the
  quality delivered to the production.

85
Case Study - The People (continued)

• Ian Sharp is the technical manager, in charge of
  all technical matters, from equipment to quality.
  He interacts with all labs departments, but not
  so much with end customers, except when big
  issues arise. He will retire in 2 years time. He
  has a strong, solid technical background. In
  fact, you have the feeling he is really the man
  who makes the decisions about the running of the
  lab. He is highly respected within the business.
•  
• The CTP told you they might have chemistry issues
  (currently outside of Kodak standards). According
  to him and the colorists, when they print on Agfa
  there is no problem at all, everything is fine
  and the customers are happy. When they print on
  Kodak, the prints are too green. This is the main
  reason why the agreement has been ignored.
•  
• He also has mentioned that Agfa is treating him
  and his team well providing regular visits, good
  service, constant contact, which has not always
  the case with Kodak in his view. Ian is a loyal
  person and would not readily leave a company who
  has treated him well.

86
Case Study - The People (continued)

• Dave Moss is production manager. From the
  beginning, you have established a good
  relationship with him. Dave will probably replace
  Ian when he retires. Here is a contact with whom
  Kodak can communicate well. You share information
  with him, and he helps you interpret Ians
  requests. He is also responsible for delivering
  high output, on-time and good quality prints at
  low cost.

87
Case Study - The People (continued)

• Alex Giles, the head of digital post, looks after
  creative effects and new techno implementations,
  does not care about the traditional arm.
  Nevertheless, he knows that something bad from
  the traditional department, will give him more
  issues and less interesting work.

88
Case Study - The People (continued)

• Toby Mellar is very pro Agfa. For him, it is an
  easy product to grade, takes less time and he
  does not have to do the job 2 or 3 times to get
  it right. He says Agfa comes to visit them
  regularly as well as management.

89
Case Study - The People (continued)

• Bob Thompson likes the Kodak products and does
  not find it difficult to grade either Agfa or
  Kodak products. However, he is too new in the
  company to have a major say, and so just goes
  along with using Agfa. His preference would be
  Kodak.

90
Case Study - The People (continued)

• Thierry Vassuer is the commercial representative
  of the company. Like you, he is trying to deal
  cope with all the productions within the country.
  You have a very close relationship you need him
  and he needs you. You readily share information
  with each other, and he has even introduced you
  to potential Kodak customers. He is a good source
  of information such as volume and can tell you
  total meters of intermediates and positives
  products the lab buys every year.
•  
• The competitive situation is very tight, so
  keeping costs down is important to him. He wants
  to get the prints business from the independent
  distributors, even though the environment is
  highly price sensitive. On the negative
  processing side, new challenges are hitting his
  business from the new front-end lab that has just
  opened, and some postproductions houses.

91
Case Study - Lab Customers

• DistributorTheir technical manager deals with
  release print department and it is not a direct
  Kodak customer production. They are in regular
  contact with Jim Burn, through its director of
  purchasing and director of production. They
  production may also be a Kodak customer. These
  customers, through their people, interact very
  regularly with key laboratory staff and with the
  laboratory management.

92
Case Study - Other Important Players

• Insurance experts
• Rental houses
• Professional press

93
Case Study - Financial Elements

• The lab bought last year (globally)
• - 25 million meters of positive
• - 700 000 meters of intermediate.
• Fuji is selling the intermediate at 1.36 euros
  and is offering payment terms of 30 days from end
  of the month. You know from your others European
  colleagues Fuji can offer sometime 0.18 euros net
  net on invoice.
• Agfa has secured the business with 0.17 euros net
  net on invoice, offering payment terms of 60
  days.
• The Kodak deal for the past 2 years was 0.20
  euros net net on invoice for a minimum of 20
  millions meters and 1.52 euros for the
  intermediate no matter what the volume. Payment
  terms of 30 days from end of the month, 1.5
  cash discount.

94
Case Study Kodak pricing policy for the coming
year

• Due to the European legislation and because you
  are operating on a global market that may expose
  local deals, you cant afford to offer special
  one off prices. Therefore, you now have a
  consistent pricing policy across the region.

95
Case Study Your Task

• Now you have the full scenario - the clients
  current business and prospects, competition, and
  team members complete each of the following
  seven tasks
• Identify the SPICES of the individuals in this
  case study.

96
Case Study Your Task (continued)

• Identify the role in the Decision Making Unit
  (DMU) of each individual.

97
Case Study Your Task (continued)

• Identify the position in the Socio Dynamic Grid
  of each individual.a. Define the DMU. b. Map
  the position of each person on the Socio Dynamic
  Grid. c. What action should you take with each
  person?

98
Case Study Your Task (continued)

• Identify the value that Kodak currently adds to
  the case study.
• a. Identify any additional value Kodak could
  offer within this case study and which
  services offered by Kodak would improve the
  customers productivity.
• b. What tools do you have to secure the negative
  processing business? How can you
  demonstrate real benefits to the
  customer? 
• c. Should you or could you go for 100 of the
  business?

99
Case Study Your Task (continued)

• Discuss and agree on a negotiation strategy to
  provide a Win-Win situation.

100
Case Study Your Task (continued)

• 6. Attach a relative currency value to these
  ideas.

101
Case Study Your Task (continued)

• 7. Prepare a proposition to the customer in
  order to explain this value.