Winning More Deals By Staging Device Replacement
Winning More Deals
by staging device replacement.
In my role as an assessment expert I talk to a lot of dealers about their Managed Print programs and how best to ensure they are winning more deals than they are losing. “Assessment Selling” typically has win rates of 60% to 70% (compared to an average of 30% for typical “box” selling) so you can understand their interest in getting it right.
One of the first things to get right in order to dramatically increase win rates is an account takeover approach. There are basically 2 approaches: Existing equipment management or wholesale device replacement. When I’m working with dealers I typically recommend a hybrid approach that involves taking over the existing fleet to begin with and slowly replacing existing equipment over the life of the contract. People as a rule aren’t big fans of change. Change = Disruption and most businesses are busy enough.
How to boil
One analogy for this hybrid approach I like is called “How to boil a frog and have him (sic) like it.” You can try to boil a frog in 2 ways. The first way is to boil the water first (replace all the equipment) and then dump the frog (customer) into the boiling water. The frog will jump out of the boiling water and hop far, far away. The other method is to put the frog in room temperature water and slowly raise the temperature, a degree a minute. The frog will acclimatise to the rising temperature and eventually “croaks” without even knowing it. The same is true for how we sell. Ask to much, too soon, and you’ll see win rates lower than 30%. Have a plan that helps them the way they are at the beginning and you’ll see win rates that are much, much higher! It’s all psychology, but remember, we are selling to people, and people think about their own needs first.
Let’s take a simple look at the hybrid approach stages:
- Step One: Take over existing fleet. Then manage it beyond their expectations. Have “service and uptime” requirement language in your contract.
- Step Two: Use first quarterly review to solve a business problem. Sometimes you’ll replace a piece of equipment because it no longer meets your service and uptime requirements. Other times you’ll replace equipment because of a business need that the old equipment just isn’t cut out for.
- Step Three: Repeat Step #2: . Use each quarterly or periodic review to solve more business problems. The more problems you solve, the better you get to know your customer over time, the more likely they will be to take your future recommendations!
We can’t lose sight of the fact that our first goal must be to get the contract. Once we have a 3 to 5 year contract in place we now have the EXCLUSIVE right to manage things related to their print environment. By year 2 you may have replaced 50% of the fleet. By year 3 you could have replaced it all. This is a very strategic approach to selling more equipment and once your hybrid pipeline is built you will be selling more equipment than ever before and with far fewer account losses. Trust me, I work with dealers on a regular basis to build assessment selling approaches that incorporate this hybrid methodology and it works.
the hybrid method.
You don’t have to take my word for it. To get started, maybe choose (or hire) a sales professional to use the approach for 6 months to a year and measure their results compared to the rest of your sales organization doing it the rip and replace way. The increased win rates and stronger margins will do all the talking!
If you are a dealer doing this today, how did you get started and why? Do you have any stories you can share about how it helped to strengthen your business? Do you think this is baloney and successfully boil frogs all day long doing it the old way? Your voice matters so share a comment or two and join the conversation!
Sales reps do what they are paid to do, and if they are paid more on new equipment than on MPS deals, is it any wonder they go after the iron? In this article we'll talk about how you can strategically stage account takeovers to satisfy both new equipment quotas as well as driving additional money from existing equipment.