“It's fear of the unknown. The unknown is what it is. And to be frightened of it is what sends everybody scurrying around chasing dreams, illusions, wars, peace, love, hate, all that--it's all illusion. Unknown is what it is. Accept that it's unknown and it's plain sailing. Everything is unknown--then you're ahead of the game. That's what it is. Right?”
: John Lenon
I started this blog on the suggestion of a friend that I should perhaps give her sales people some tips on negotiating sales. Though I have been writing for more than a year, it is now that I am touching on one aspect of negotiating.
A friend of mine, based out of Los Angeles is providing services in the Supply Chain Field with special emphasis on RFID, and its usage in Logistics and Inventory Management. I have a fairly broad understanding of the topic, as I had set up an Enterprise Wide Maintenance Department facing complex issues of part replenishments. So when my friend discussed some potential target areas, in India, I strongly suggested the retail sector.
To cut a long story short a pitch was made and discussions were held resulting in my friends company, lets call it RFID Ltd., being short listed. After that things came to a stand still. Weeks led into months, and nothing moved, till my friend read in a paper that the Client Company was going to a huge Multi National company to provide the basic infrastructure for a pilot case.
Again we had the usual round of talks as to what could have gone wrong. A number of causes were discussed including the reliability of technology, its provenance, pricing etc. Finally I asked my friend if he had taken care of the Clients “Fear Factor”.
I briefly explained my version of the “Fear Factor”.
What exactly is the “Fear Factor”? I have often seen in organizations which are going in for products or services from SME’s (Small and Medium Sized Enterprises); Decision Makers hesitate in taking the final decision. This is especially true for technology upgrades. This fear factor is due to a perception within the decision makers of the potential for failure and then being forced to take responsibility for a situation which could have been due to reasons not of the suppliers making. In such situations decision makers tend to take the easy and safe way out of going for solutions from the most well known brand and not necessarily the most appropriate one.
If the product / service is successful then the decision maker basks in the glory, and if it fails than there is always the fall back option that the product / service was from the most well known brand, if it failed then they could not be totally responsible.
Decision Makers taking decisions on such factors, also tend to take it easy with the assumption that the implementing company will somehow take care of things. They forget that technology like fire is a good servant, but a bad master. No amount of technology can undo damages caused by bad processes.
We then proceeded with the assumption that perhaps the target company came down with a bad case of the “Fear factor”. The next step was what could be done?
Knowing that this problem has its roots in ignorance, the one major initiative is to fight ignorance with knowledge. We realized that extensive training would need to be imparted in the pre-sales period, with lots of provisioning and collaterals to champion the product / service in the implementation and post implementation phase. I also strongly suggested that my friend be ready to make suggestions in the processes itself to ensure that for want of clear cut processes, their product failed.
My suggestion was that in such cases the only solution lies in the ability of the SME to have successful implementations to showcase its reliability and a clear cut implementation policy to reassure a potential client. All of it backed by extensive documents and training material. The SME has to act in a consulting mode as well and not just a product / service centric mode.
Though the case has not been won by my friend as yet, he has resorted to use the knowledge factor to fight the darkness of ignorance, and it seems as if he is gaining momentum.
: John Lenon
I started this blog on the suggestion of a friend that I should perhaps give her sales people some tips on negotiating sales. Though I have been writing for more than a year, it is now that I am touching on one aspect of negotiating.
A friend of mine, based out of Los Angeles is providing services in the Supply Chain Field with special emphasis on RFID, and its usage in Logistics and Inventory Management. I have a fairly broad understanding of the topic, as I had set up an Enterprise Wide Maintenance Department facing complex issues of part replenishments. So when my friend discussed some potential target areas, in India, I strongly suggested the retail sector.
To cut a long story short a pitch was made and discussions were held resulting in my friends company, lets call it RFID Ltd., being short listed. After that things came to a stand still. Weeks led into months, and nothing moved, till my friend read in a paper that the Client Company was going to a huge Multi National company to provide the basic infrastructure for a pilot case.
Again we had the usual round of talks as to what could have gone wrong. A number of causes were discussed including the reliability of technology, its provenance, pricing etc. Finally I asked my friend if he had taken care of the Clients “Fear Factor”.
I briefly explained my version of the “Fear Factor”.
What exactly is the “Fear Factor”? I have often seen in organizations which are going in for products or services from SME’s (Small and Medium Sized Enterprises); Decision Makers hesitate in taking the final decision. This is especially true for technology upgrades. This fear factor is due to a perception within the decision makers of the potential for failure and then being forced to take responsibility for a situation which could have been due to reasons not of the suppliers making. In such situations decision makers tend to take the easy and safe way out of going for solutions from the most well known brand and not necessarily the most appropriate one.
If the product / service is successful then the decision maker basks in the glory, and if it fails than there is always the fall back option that the product / service was from the most well known brand, if it failed then they could not be totally responsible.
Decision Makers taking decisions on such factors, also tend to take it easy with the assumption that the implementing company will somehow take care of things. They forget that technology like fire is a good servant, but a bad master. No amount of technology can undo damages caused by bad processes.
We then proceeded with the assumption that perhaps the target company came down with a bad case of the “Fear factor”. The next step was what could be done?
Knowing that this problem has its roots in ignorance, the one major initiative is to fight ignorance with knowledge. We realized that extensive training would need to be imparted in the pre-sales period, with lots of provisioning and collaterals to champion the product / service in the implementation and post implementation phase. I also strongly suggested that my friend be ready to make suggestions in the processes itself to ensure that for want of clear cut processes, their product failed.
My suggestion was that in such cases the only solution lies in the ability of the SME to have successful implementations to showcase its reliability and a clear cut implementation policy to reassure a potential client. All of it backed by extensive documents and training material. The SME has to act in a consulting mode as well and not just a product / service centric mode.
Though the case has not been won by my friend as yet, he has resorted to use the knowledge factor to fight the darkness of ignorance, and it seems as if he is gaining momentum.
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