In any scenario where a prospect is seeking a package solution for its needs, the ability to prevail over would-be suitors is somewhat contingent upon the prospect’s business motives. More specifically, is this client seeking the lowest-cost provider, or does it value a consultative partnership?
Let’s operate on the assumption that the lowest cost is not the overriding motivation when a prospect is evaluating two or more options. While cost is always a factor, it is one of many considerations. In this month’s State of the Industry report on contractual success, we asked out dealer panel what factors in a competitive scenario have helped tipped the scale in their favor.
A company such as Nauticon Office Solutions of Gaithersburg, Maryland, rarely throws its hat into blind RFP scenarios, as it is not a formula for success with either the dealer or the end-user, notes John-Austin Shepard, vice president of sales. Rather, Nauticon relies on a refined sales process and ascertaining a firm understanding of the client’s needs in order to align it with the right technologies that can spell success.
Nauticon’s teams are process-oriented, but with little red tap to drag down the initial engagement, the dealer can outline a proposal in short order that allows the client to make quicker decisions. “We’ve had a lot of success with virtual technologies like Zoom and Teams for virtual tours of our office, as well as product demonstrations,” Shepard said. “That has allowed us to differentiate and not perpetuate the ‘race to the bottom’ on price.”
One of the missed opportunities for vendors that lead with price is the value of putting forward a comprehensive, anticipatory implementation plan, notes Larry Weiss, president of Atlantic Tomorrow’s Office in New York City. A technology-driven plan complete with project management and the ability to track everything has often elevated Atlantic from the crowd of contenders.
“You have to show them how you do it and you need to leverage technology,” he said. “The way we present it always raises their eyebrows because I don’t think most companies understand the importance of the implementation plan, how we achieve and manage it. Projects need to run smoothly and get done on time. It’s one of our biggest competitive advantages.”
Demonstrating Value
The value of a quality initial presentation cannot be underscored enough, notes Dawn Abbuhl, president of Repeat Business Systems (RBS) in Albany, New York. Showcasing the dealer’s expertise also speaks to its vast experience and the ability to forge a true partnership as opposed to a transactional one.
Every now and then, clients need a gentle reminder of the monetary value behind its relationship with RBS. In one scenario, a client that was experiencing significant financial problems and needed to reduce its costs sent out a blanket email to all its vendors, including RBS. In the missive, it asked all vendors to reduce their costs by 20%. While the solution seemed obvious and simple to the client, its appreciation of the value RBS brought to the relationship, apparently, was not.
Abbuhl was able to add clarity, however. She provided data from the 10-year engagement that outlined the cost savings RBS had provided that weren’t requested by the client—including the use of more efficient printing devices that reduced the number of stand-alone printers, and an enhanced workflow that alleviated paper usage.
“We were able to show them that during our relationship, we already provided more than that 20% savings over time and we were able to quantify a real dollar value,” she said. “They were very appreciative of that.”
Knowing when a potential deal is not a good fit for an engagement, particularly when the motivation ultimately centers on price, can prompt dealers to make tough decisions in the interest of the company. Kyle Elliott, president of Spectrum Technologies in El Paso, Texas, waxes Old West philosophical in knowing when to fold ‘em.
“With highly competitive deals—and sometimes through the school of hard knocks over the years—we’ve had to learn when to walk away,” he said. “I hate losing. But I’ve found that living with a bad deal for the next 36 to 60 months is something that I hate even more.”
In the final analysis, notes Rich Brandenburg, senior vice president of sales for Donnellon McCarthy Enterprises of Cincinnati, the assumption that most deals are price-driven is not the correct one. “The key factor is always the relationship,” he said. “If they are talking to you through the process and trust you, they will find a way to do business with you.”
