Dealers Working Together | DWT
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Transcript of Dealers Working Together | DWT
DWDWTT
Dealers Working TogetherDealers Working Together
Complete OfficeComplete OfficeNorth Carolina USANorth Carolina USA
November 20, 2009November 20, 2009
Dealers Working TogetherDealers Working Together
I.I. Margin ManagementMargin Management
II.II. Vendor and Key Supplier ManagementVendor and Key Supplier Management
III.III. Marketing ManagementMarketing Management
IV.IV. Recruiting and Hiring ManagementRecruiting and Hiring Management
V.V. Training and Coaching ManagementTraining and Coaching Management
VI.VI. Customer ManagementCustomer Management
VII.VII. ProformaProforma
Complete OfficeComplete OfficeNorth Carolina USANorth Carolina USA
II.II. Margin ManagementMargin Management
a. Negotiationa. Negotiation [Primary [Primary
Wholesaler]Wholesaler]
BACKGROUND RESEARCHBACKGROUND RESEARCH
Vendor IntelligenceVendor Intelligence• BPIG – TRIMEGA – Major SuppliersBPIG – TRIMEGA – Major Suppliers• Primary Wholesalers – SP – US Primary Wholesalers – SP – US • Secondary & Specialty SuppliersSecondary & Specialty Suppliers• Support & Other Key VendorsSupport & Other Key Vendors
Top Gun Contacts = Best DealTop Gun Contacts = Best Deal Strengths & WeaknessesStrengths & Weaknesses Opportunities & ThreatsOpportunities & Threats Hunger For Your BusinessHunger For Your Business
• Findings Findings • ConclusionsConclusions• RecommendationsRecommendations
ACCOUNTS PAYABLE ACCOUNTS PAYABLE REVIEWREVIEW
Master List of VendorsMaster List of Vendors
Identify AllIdentify All
Their Products & ServicesTheir Products & Services
Contract TermsContract Terms
How Much SpentHow Much Spent
Conclusions & RecommendationsConclusions & Recommendations
CONSOLIDATE CONTRACTSCONSOLIDATE CONTRACTS
Estimate Spend With Each Estimate Spend With Each VendorVendor
10% Out of Each “Strategic” 10% Out of Each “Strategic” SupplierSupplier
Conclusions & RecommendationsConclusions & Recommendations
VENDOR SELECTIONVENDOR SELECTION
Clear Answers to “Why”Clear Answers to “Why”
Performance Metrics*Performance Metrics*
Contract TermsContract Terms
““Vendor’s Shoes” Formal ReviewVendor’s Shoes” Formal Review
DWT ProformaDWT Proforma
Selection CommitteeSelection Committee
*PERFORMANCE METRICS*PERFORMANCE METRICS
Metrics Are The FoundationMetrics Are The Foundation
You get what you measure, not what is in You get what you measure, not what is in the contract.the contract.
Choose metrics that support your goals Choose metrics that support your goals and reward the behavior you want to and reward the behavior you want to encourage.encourage.
--Dealers Working Together--Dealers Working Together
GOAL SETTINGGOAL SETTING
Target CostsTarget Costs
Compare To Industry Top Compare To Industry Top CompetitorsCompetitors
Set Your GoalsSet Your Goals
““Favored Customer” ProvisionFavored Customer” Provision
Get All in Writing & Org ChartGet All in Writing & Org Chart
Prepare to NegotiatePrepare to Negotiate
NEGOTIATIONSNEGOTIATIONS
Never Offer To Split The DifferenceNever Offer To Split The Difference
Get Them To Split The DifferenceGet Them To Split The Difference
More For Your MoneyMore For Your Money
Not Budging Enough On Price?Not Budging Enough On Price?
Ask For Extra Services & SupportAsk For Extra Services & Support
Lowest Price Not Always The Best Lowest Price Not Always The Best PricePrice
KILL THEM WITH KINDNESSKILL THEM WITH KINDNESS
Calm, Polite & Personable Calm, Polite & Personable NegotiationsNegotiations
Build Relationship While Build Relationship While NegotiatingNegotiating
They Will Feel GoodThey Will Feel Good
And Go The Extra MileAnd Go The Extra Mile
WE MAKE THE FIRST OFFERWE MAKE THE FIRST OFFER
DWT Set The AnchorDWT Set The Anchor• Conversation Will FollowConversation Will Follow• Force Vendor To Justify Any Changes To Force Vendor To Justify Any Changes To
Anchor Anchor • Stick To Initial TermsStick To Initial Terms
Never Say Yes To Their First Offer Never Say Yes To Their First Offer BackBack
• Could We Have Done Better?Could We Have Done Better?• Something Must Be Wrong?Something Must Be Wrong?
Cannot Say Yes To First Offer BackCannot Say Yes To First Offer Back
FRAME THE NEGOTIATIONSFRAME THE NEGOTIATIONS
Potential Loss vs. Potential GainPotential Loss vs. Potential Gain• Point Out What Vendors Stand To LosePoint Out What Vendors Stand To Lose• Not Doing Business With YouNot Doing Business With You• Benefits Of Doing Business With YouBenefits Of Doing Business With You• Support VendorsSupport Vendors
Alternatives: Greatest Source of Alternatives: Greatest Source of PowerPower
• Have Alternatives ReadyHave Alternatives Ready• Best Possible Deal?Best Possible Deal?• Might Go Elsewhere = We Have OptionsMight Go Elsewhere = We Have Options• Prepared To Walk AwayPrepared To Walk Away• Watch Their Offer ImproveWatch Their Offer Improve
PATIENCE IS OUR VIRTUEPATIENCE IS OUR VIRTUE
Longer The Negotiation = The Longer The Negotiation = The BetterBetter
Get What We WantGet What We Want
Little Bit At A Time “Tug Boat” Little Bit At A Time “Tug Boat” StrategyStrategy
Decision to Move Forward . . .Decision to Move Forward . . .
DWTDWTDEALERS WORKING TOGETHERDEALERS WORKING TOGETHER
SILENCE IS GOLDENSILENCE IS GOLDEN