Competing on Your Route Module 6: Negotiation

Training Objectives Discuss the differentiators that set Alsco apart from our competitors Relate how competitors pricing can be confusing to customers Recognize the steps used in selling in a competitive environment – CARE Model

Know your competition Be a business consultant for your customer Strengths and weaknesses – know our differentiators, or things that make us stand out Understand our competitors billing practices Low unit price vs. high ancillary charges Low intro price vs. price increases No competition bashing – our competitors do the best they can, teach your customer why we are better! Try to see the proposals or invoices of the competitive bids – help your customer understand the invoices, and how their billing works

Our strengths and differentiators Describe to your customer the items that make us stand out Live person on the phone for customer service Multiple deliveries per week Weekend deliveries Flexible inventory management One and Done service A-track online invoice monitoring Local plant/multiple plant support American made linen NSF certification

Understanding billing and pricing Your competitors will use confusing pricing that your customers may not understand Low unit price vs. High ancillary charges Ancillary costs are the charges for non-inventory items (loss charges, delivery charge, minimum charge, etc.) Cost per unit will be low ( 5¢ napkin or a 9¢ bar towel) Ancillary cost will be high to make up for the cheap price of the inventory items Low intro price vs. Price increases Sometime referred to as “cable tv” pricing Inventory will be offered at low prices, but with no guarantee how long those prices will be in effect Soon, price increases eliminate any savings

CARE Sales Model Dealing with competitors on your route Connect with the customer Determine if your customer is shopping with our competitors. Look for signs of competition Brochures Business cards Attitude of your customer toward you Sometimes a customer will tell you she’s been offered a better price Empathize - keep the customer in the conversation

CARE Sales Model Dealing with competitors on your route Ask questions Fair market questions, “Do you know …?” Low unit price vs. high ancillary charges Low intro price vs. price increase “What competitor?” “How much cheaper?” “Can I go over their proposal with you?”

CARE Sales Model Dealing with competitors on your route Relate features and benefits Billing practices of competitors vs. Alsco Differentiators that set Alsco apart

CARE Sales Model Dealing with competitors on your route Express gratitude for the business If customer will agree to stay Offer a direct sale item (logo shirt from the catalog), or a logo mat Offer an extended sample (All Fresh product) If customer will not agree to stay Buy time, empathize, keep the conversation going Offer “Can I bring my manager in?”