Transcript Fundamentals of Selling

Multiple Question Approach
Situation
Problem
Implication
Need-payoff questions
Remember product not mentioned in SPIN!
10-1
Electric Motors, Inc.
Producer of heavy-duty electric motors.
10-2
SWOT Analysis
Strengths
5% greater efficiency.
Requires less
maintenance.
Will last 20 vs. 15 years
Weaknesses
Costs 25% more.
Costs 10% more to install.
10-3
Electric Motors, Inc.
Situation:
How many motors do you currently have operating?
200
How often do your maintenance people service the
motors?
Every month.
How many people are on your maintenance crew?
50
What is the lifespan of your current motor?
15 years
10-4
Electric Motors, Inc.
Problem:
Have maintenance costs gone up as wages have
risen?
Yes!
Have operating costs gone up as electricity prices
have risen?
Wow! Have they ever!
I’ll bet it’s expensive to replace these every 15 years –
in installation expenses - right?
Yes
10-5
Electric Motors, Inc.
Implication:
You’re spending a lot on electricity – have you considered
trying to find a more efficient motor?
Yes, but they’re expensive compared to our current motor.
Yes, but what if these motors have lower maintenance?
Hmm, could be. But most are more expensive to install.
But what about the increase in lifespan of the motors?
Oh, I guess I was always concerned with up-front cost – I
didn’t think about longer-term savings.
10-6
Electric Motors, Inc.
Need-payoff:
 If I’m understanding you correctly, what you need is a solution that
will save you money – either from a lower purchase price, or one
that will save you money over the life of the motor – is that right?
 Yes, I guess that’s true.
 And that’s easier and cheaper to maintain?
 Yes.
 Maybe one that requires so little maintenance that you could send
some of your maintenance people to other departments?
 Yes, I’d be a real hero around here!
10-7
Electric Motors, Inc.
Lead in to Presentation:
I’d like to show you the specs on the Elmo 5000. I think
you’re going to be pleased with the money you’ll save over
the life of this motor!
Would that be of interest to you?
10-8
Super Service Contract, Inc.
Provider of maintenance services.
10-9
SWOT Analysis
Strengths
 On call 24/7/365.
 Reps trained by us.
 Factory parts – meeting all
specs, and 100% in stock.
 Equip only 10 years of 20 year
lifespan, but maintenance is
more expensive with time.
Weaknesses
 Contract costs $10,000 per
year.
 Factory parts 10% more than
generics.
 Equipment usually reliable.
 New equipment coming down
in price.
10-10
Super Service Contract, Inc.
Situation:
How many of your staff currently maintain equipment?
10 full time staff
Do they receive training on this type of equipment?
When they start – sort of spotty after that; mostly inhouse.
How often does the equipment get serviced?
About twice a year unless there are problems.
10-11
Super Service Contract, Inc.
Problem:
Has the frequency of down-time been pretty
consistent?
It’s broken down twice this year – before it was about
once a year.
Has your staff been able to handle repairs?
Yes, except when the frammeter blew a modulator,
then we had to special order parts.
When do breakdowns generally happen?
Ha! Sunday night at about 9:00PM when the system
kicks back in to get the building heated up for
Monday morning.
10-12
Super Service Contract, Inc.
Implication:
Whew! Does that cost a lot of overtime?
I’ll say!
Do you have the spare parts you need in those cases?
Sometimes – usually just the small parts.
What happens if the building doesn’t get warmed up by
Monday morning?
The tenants, and my boss, are pretty annoyed.
10-13
Super Service Contract, Inc.
Need-payoff:
 If I’m understanding you correctly, the equipment has begun to
require more maintenance, which has increased operating costs. Is
that correct?
 Yes.
 So if I can show you how to save money on maintenance – and
how to keep the tenants, and your boss, warm on Mondays – that
would be of interest?
 Yeah, I guess it would!
 And would it also be nice to increase effective useful life of the
equipment 3 to 5 years?
 Yes, that would definitely make my boss happy!
10-14
Super Service Contract, Inc.
Lead in to Presentation:
Would it be of interest to you to see how our service
contract can accomplish these goals?
10-15