1. How to Show Your Client the Money
Valuate
How to Show Your Client the Money

2. Increased revenue though effective sales
Business Results
Increased revenue though
effective sales

3. Agenda Introduction to Valuate How Valuate Calculates Value
20 minute introduction to the concepts and the tool
How Valuate Calculates Value
40 minute small group work using worksheets to understand how Valuate does what it does
Proving the Case
40 minute large group demonstration of how Valuate proves the value of the “Why Pathways” case
Summary

4. Valuate as a Tool
Dealership Sales Professionals utilize Valuate to show the dollar value of various solutions

5. Dealership Sales Professionals
More productive and confident financial dialogs with customers
Close sales faster
Negotiate value rather than bid on price

6. What is Valuate
Valuate is a calculator that helps to tailor your solution to meet your customers’ financial needs

7. Tailoring the Solution
Mike Holmgren just signed a five-year, $40 million contract with the Seattle Seahawks.
Question:
What is the cost of that contract to the Seattle Seahawks?
Answer:
It depends

8. What does it depend on? Cost of capital (interest rate)
How they pay it (how much and when)

9. Example 1 The SS pays Mike $8 million per year over five years Y1 Y2
Total
Pay Mike
Cost to SS 8m 8m 8m 8m 8m
40m
7.1m
6.3m
5.7m
5.0m
4.5m
28.8m
If the Seattle Seahawks invest 28.8 million dollars today at 12% interest,
the $40 million contract will only cost them 28.8 million in today’s dollars. So the Present Value of the contract is $28.8 million.

10. Example 2
The SS pay Mike a $20 million signing bonus and $4 m/year for the next 5 years Y0 Y1 Y2 Y3 Y4 Y5
Total
Pay Mike
20m 4m 4m 4m 4m 4m
40m
Cost to SS
20m
3.5m
3.1m
2.5m
2.2m
2.0m
33.6m
If the Seattle Seahawks pay the signing bonus, then invest 13.6 million dollars today at 12% interest, the $40 million contract will cost them $33.6 million in today’s dollars. So the Present Value of the contract is $33.6 million.

11. What’s the cost of the signing bonus?
Example 2 Y0 Y1 Y2 Y3 Y4 Y5
Total
Pay Mike
20m 4m 4m 4m 4m 4m
40m
Cost to SS
20m
3.5m
3.1m
2.5m
2.2m
2.0m
33.6m
Example 1 Y1 Y2 Y3 Y4 Y5
Total
Pay Mike 8m 8m 8m 8m 8m
40m
Cost to SS
7.1m
6.3m
5.7m
5.0m
4.5m
28.8m
$4.8 m

12. So What?
Say a customer is paying $8 million per year in rent for the next five years.
If we want the customer to buy $20 million in furniture and in exchange, we will cut their rent to $4 million per year, will they be better or worse off than paying $8 million per year in rent?

13. What’s the cost of the signing bonus?
Example 2 Y0 Y1 Y2 Y3 Y4 Y5
Total
Pay Mike
20m 4m 4m 4m 4m 4m
40m
Cost to SS
20m
3.5m
3.1m
2.5m
2.2m
2.0m
33.6m
Example 1 Y1 Y2 Y3 Y4 Y5
Total
Pay Mike 8m 8m 8m 8m 8m
40m
Cost to SS
7.1m
6.3m
5.7m
5.0m
4.5m
28.8m
$4.8 m

14. What’s The Point?
We need to be able to prove the value of our solutions to the customer
We need to understand the customer’s financial needs so we can structure the solution to meet them
Valuate can both show the value and help structure the solution

15. What’s Next? How Valuate quantifies the dollar value of the solution
Application Space Savings
Move Cost Reductions
Worker Effectiveness Gains
Depreciation Tax Benefit

16. What’s in it for you? Valuate is a calculator.
When you can explain how it arrives at the values it calculates, customers will have confidence in you and your proposed solution
If you can’t,…….

17. The Four Drivers - Small Group
There are four tables set up around the room
At each table, there is a worksheet that will walk you through the calculations for one of the four drivers
You will have 25 minutes to complete all four worksheets
Afterward, we will put it all together by comparing two cases

18. In Summary
The primary “customer” may no longer be the Facilities Manager
We need to be able to gain credibility with individuals at higher and more strategic positions within the client organization
Effective use of Valuate will allow your sales professionals to communicate in the language spoken by CEOs and CFOs