Industry: Transportation Company
The transaction: Hardware and Software Sale
Revenue forecast before attending the K&R Workshop: $580K
Expected transaction close timeframe before attending the K&R Workshop: July
Narrative: Our client needed new equipment with additional capabilities to replace older devices that were reaching end-of-life. They also wanted to upgrade other equipment at the same time with the hope of getting a larger discount on the combined transaction. The client was aware of our pricing for a similar transaction at another company in our city.
Actual results: $552K in July, plus an additional $285K in September = $837K
Actual closing timeframe: We closed the order for the original proposal in July with a 4.8% discount. The order for the equipment upgrade (at full price) was received in September.
K&R Tools and Techniques: The key for us was the K&R Workshop focus on Principled Concessions™, and especially the K&R Axiom: “Let the client earn your concession”. We kept the client’s request for the equipment upgrade separated from the new equipment proposal, and we maintained their focus on the value of our proposal. The K&R Leverage Slope™ helped us to maintain our leverage, and we used the K&R Value MatrixTM to advance our arguments. The order for the equipment upgrade was closed at full price. We were able to do this primarily because we took the time to patiently listen to the client’s needs, and crafted a value based proposal that showed a high ROI for their company if they accepted our proposal.