Consultative Selling: The Hanan Formula for High-Margin by Mack Hanan

By Mack Hanan

Sped up company progress advisor Hanan offers his formulation for attaining revenues good fortune. referred to as "consultative selling," this method relies upon the repositioning of the salesperson as a expert, who is helping his consumers to be extra aggressive in enterprise. themes contain, for instance, makin

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4. Net profit—what they make on their investment or their increment over and above payback. 5. Cost—an investment on which there is no return. 6. Opportunity cost—the profit they could have made on a different investment. Analyzing the Customer Money Base Consultants ask for incremental investments, money that is over and above the basic fixed-cost investments in the business as a whole. In return, they propose incremental profits. Incremental investments are discretionary. Customers choose among them on the basis of the best combination of muchness, soonness, and sureness that meets their needs.

Crandall never looked at the Airbus costbenefit analysis. Because he rejected the criterion on which it was based, it was irrelevant whether or not its numbers added up. ‘‘Big planes pay off only when they fly full,’’ he said. ’’ As a result, he concluded that ‘‘the fact that it’s cheaper to fly per seat doesn’t make any difference. ’’ Airbus may turn out to be more accurate than Crandall in assessing the market for big planes. It makes no difference. Crandall may be wrong about cost per passenger being more important than cost per seat.

If performing closer to our norms can make you more competitive, what if we can work together the way we are proposing to achieve a $000 minimum improvement within the next 00 months? Creating Norm Warehouses The norms you work with come into play as soon as you choose a category of performance you want to improve in a customer operation where you believe you can bring the contribution to profits closer to your normal performance. At that point, you compare the customer’s current performance against your norms.

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