Situation: Mike Bowers sells soap products to grocery wholesales and large retail grocery chains. The followng presentation occurred during a call he made on Bill Reese, the soap buyer for a grocery store.
Salesperson: Bill, you have stated several times that the types of promotions or brands that really turn you on are ones that carry the best profit. Is that right?
Customer: Yes, it is. I'm under pressure to increase my profit-per-square-foot in my department.
Salesperson: Bill, I recommend that you begin carrying the king size of Cascade. Let's review the benfits and economics of this proposal. King-size Cascade would cost you 86.8 cents a box. The average resale in this market is 99 cents. That means that you would make 12.2 cents every time you sell a box of king-size Cascade. Based on my estimated volume for your store of $40,000. per week, you would sell apprxoimately two caes of king-size Cascale per week. That is $19.80 in new sales and $2.44 in new profits per week for your store. As you can see, the addition of Cascade 10 to your automoatic diswashing detergent department will increase yoru sales and , even more importantly, increase your profits - and this is what you said you wanted to do, right?
Customer: Yes, I am interested in increasing profits.
Salesperson: Do you want me to give this information to the head stock clerk so that she can make arrangements to put Cascade 10s on the shelf? Or would you like me to put it on the shelf on my next call?
- What sales presentation method was Mike using?
- Do you think this was the best method Mike could have used in this situation? Why? Do you think another method would have been better?