I NEED A REALLY GOOD EXPLANATION OF THIS PLEASE PLEASE.

Case Price Presentation or Prodio (p. 311-312) 

When Janice Thompson began her work as a Prodio salesman, she thought it would be easy. After all, the service he sold saved customers thousands of dollars. "What we do," said Evin Martinez, director of sales, "is to verify all the credentials a doctor or other health professional has when hired by a hospital or clinic. It turns out it can take up to six months to verify all the licenses a doctor should have. We can  with our patented software solution in less than 30 days". ". She gave him several case studies showing savings of more than $100,000 due to revenue being lost, waiting for the doctor's credentials to be verified and another $50,000 on average for eliminating the personnel used in the verification process. Then he started calling the hospitals and asking for the chief of human resources. Several times, they passed it and the conversation would be something like this.

"I would like to meet with you to discuss an exciting new service, Prodio, which is responsible for the accreditation of its employees. ¡ The best thing is that it only costs $250 per doctor, which saves most hospitals more than $150,000! "$250 per doctor? $ That's crazy! I have no budget at all like this! No, thank you!"

So Janice called Evin and said, "I'm really not going anywhere. Can I work with someone successful to watch him do it? " The following Monday, he found himself in San Diego, meeting with Rich Sample for coffee before making some sales calls.

Rich recommended waiting to give the price until the prospect had given him information about how many doctors he was accrediting and what that cost was, as well as how long it took him to get the information about accreditations. " You can't sell the price until you know what your current costs are," he advised. "This first call is a great example. The hospital's executive director asked me to meet with the human resources director to get that information, which I did last week.

Today, I will present the costs and benefits and ask for the sale". In the hospital conference room, Rich and Janice sat at the side of the table in front of CEO Alex Maxwell and HR Director Dianne Green. "Alec," Rich said, "according to the information Dianne gave me, you will reduce the accreditation period from an average of 90 days to less than 30. For your more advanced specialties, it will go from six months to less than 45 days.

Dianne could not sum up the lost income she will save by shortening the period, but we were able to determine that she will also eliminate two positions, saving another $138,000 compared to spending just under $60,000 per year ". Then he handed the contract to the CEO. There was a momentary silence and Janice could hear the ticking of the old clock on the sideboard. Shirley writhed, visibly upset. When Alec looked at her, she said, "Alec, I don't want to fire two people. And I have no other position to offer them". Alec replied: "But this is one of those things we'll have to do: financially, it's the right thing for the hospital". When Alec turned his attention to signing the contract, Dianne stood up and said, "Well, congratulations Rich. Janice, nice to meet you," and left the room. An awkward pause followed, which broke when Alec returned the contract to Rich. "Does this contract mean we have to get all our credentials through you?" "No," Rich replied. "Just specify the cost and our performance guarantees". " OK. Work with Dianne to make the transition. I'm not firing anyone, so until we can put them in other positions, you'll have to wait ".

 

Questions 

 

1. Evaluate Rich's approach to presenting price. Is Rich's approach something Janice should emulate?

 

2. Presenting the price as the striking one doesn't seem to work. If Janice emulates Rich's approach. What should you do when you call to commit to having that first meeting?

 

3.Rich will need to work closely with Dianne and her people, and it does not seem that Dianee is happy with the sale. What could Rich have done to avoid this situation? How could it have been different if Dianne had been the initiator instead of Alec?

 

References:  Castleberry, S., Tanner, J. (2021). Selling Building Partnerships (11th ed). New York,

NY: McGraw Hill.