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Converting a company from product sales to product sales with value added services

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brief transformation guide for value added services sales

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Converting a company from product sales to product sales with value added services

  1. 1. “Converting a company; from product sales to product sales with value added services” Coskun Soyer
  2. 2. reasons for transformation • Decreasing profit ratios are always problem even with increasing sales • However if only sales force is “product”, this is the “reason” • Product is the only value which is offered to customers “ even with quality”, • But profit ratios of “the product” can not fulfill targets of company • Value-added services, which are sold with products, are answers for this kind of problems • Idea is to force differentiation and improving profit ratios.
  3. 3. transformation steps • When is the right time for transformation decision? • What are the reactions from within the company to the new focus? • How will the company affect during the transformation phase? • what are the new products? • targets for long term…
  4. 4. when is the right time for transformation decision? • Timing is always important, right time is always “today” With two main guidances Keep in mind : Value addes services are answers for your problems But always with orientation and master plan as follow……..
  5. 5. What are the reactions from within the company to the new focus? • Of course, it is not an easy issue, • First mission is always with after sales department, this department must transformed from cost center to profit center. Many of new products will be developed by this department. • Second mission is with sales forces. We have to convince them with value of service criteria. They aren’t considering value of service as a product. Therefore workshops will be organized for sales department.
  6. 6. How will the company affect during the transformation phase? • One of the most important fact about companies is loyalty of staff. Many of them have working long years, therefore convincing them is not an easy process, about sales of value added services as products. • Especially after sales department must work on very hard for new products. On the other side they have to finalize some systematical issues before product development such as “master data”. • Sales staff will be trained about value of service products. They will learn that service offers will not be used for price competition. • The new rule is important, service products are profitable and ensure customer loyalty in long term.
  7. 7. what are the new products;? • Maintenance agreements • Entry product for value added service market which is considered as first level product. • Don’t worry, your customers are already demanding maintenance agreements as long term. • Some headlines; • Service network trainings are important • Call center will have an important duty to centralize workflow
  8. 8. what are the new products? • Extended warranties • First rule; always keep in mind legal regulations of your country • For example : what is the market condition for common warranty period? • Give a decision for extended warranty period • Always your best profit product
  9. 9. what are the new products? • Insurance • Of course it will be the most effective product of your portfolio. • Open a tender… • Don’t forget!!! In some countries, brokers are not familiar for these range.
  10. 10. targets for long term Your story starts from this point
  11. 11. do’s • Service network trainings • designing of products with sales department support • committee like “product portfolio council” for regular communication and interaction • Always show income effect to convince non supporters
  12. 12. Don’ts • Never say “as a decision of HQ” to service and sales network, • Tracking of dealers and service network (reports-competitions-etc.) shouldn't start with beginning of project
  13. 13. THANK YOU more details : coskun_soyer@yahoo.com.tr

brief transformation guide for value added services sales

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