Can I create some value? We'll see.

Day 5 - 16 Feb, 2012

The great fishing expedition went pretty well.  Got some calls in, a couple of appointments and a new list of people to call.  Learned a few things from the junior reps and hopefully shared some knowledge with them. Linkedin is the most accurate of all the intel spots but, still about 90%, as people forget to update their profiles.

Today, was a lesson in patience and negotiations.  First the patience.  A prospective customer wants to buy a product from us (wants may be too strong).  They haven't done business with my company for a couple of years and being that we start with an A, we are near the top of a list of companies they could buy from when the manufacturer of the product would not sell to them directly.  Having no real "value" to the end customer, I cut our price down to what I thought was a fair price.  We had not earned anything really so, no harm no foul and I get put their logo back on my brag slide.  Here's the good part, they disagreed with my pricing and asked me to cut the price to 2% over cost.  WHAT!!!!

For those not in the IT business, we generally sell products in the 16% - 25% profit range.  When the words two percent came out of their mouth, I almost audibly chortled into the phone.  Turns out, they were serious.  After 4 phone calls and about 90 minutes of discussion, both the prospective customer and I have decided to take the conversation under advisement and touch base again tomorrow.  My patience were worn to a nub.

Now the negotiation piece.  I have to somehow create value to this customer. How can I get them to move their position? It doesn't have to be far, just enough to cover a sandwich and diet coke. I am mostly trying to add their logo back to our customer list and earn more business down the road.

What did I try you ask?  I tried everything.  First, I went over their budget trying to show how I was saving them money.  Second, I separated hardware from software and support to create a bargaining position on any one of the three fronts.  Third, I went over their payment history with our company, btw they average about 90 days on Net 30 terms (I wish my mortgage company would let me do that) and asked them to pre-pay the invoice and I'd ship product once payment was received.  Still not at 2% above cost but lower than my previous price.  And lastly, I tried to get them to commit, in writing, to giving me all of the business that they do with this manufacturer for the next 12 months.  A signed cost plus volume purchasing agreement.

As you can tell, I clearly don't have their attention.  I'm stewing over what else I can do to help them and my company but, I've hit a wall inside my brain pan. Alec Baldwin keeps playing in my head.  AIDA, attention, interest, desire, action (if you don't know what I mean check out Glengarry Glenn Ross).  We'll see how it goes tomorrow.

If anyone out there is reading this and has a bright idea, I'm all ears.

Stay persistent and happy hunting.