1. Reducing The TCO Sales Cycle
Kevin Wood

2. Reducing The TCO Sales Cycle
Considerations
Metrics
Strategies
Reducing The TCO Sales Cycle

3. Why is TCO a Long Sales Cycle?
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Investment
Energy Disconnect From MRO
Product Performance

4. Objective
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Prospects
Customers

5. Forces of Commoditization
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Internet
Disintermediation
Automation
Globalization
Consolidation

6. Examples of De-commoditization
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7. Two Reason Why People Don’t Buy
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They don’t believe their problem is significant enough to take action, or
2. They do not believe the solution will work.

8. Three Challenges To Shorten The Sales Cycle
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“Decision” challenge – Prospect does not have a high-quality decision process to make this type of decision. We put good information into a bad process and the decision is random and unpredictable.
Change – A decision to buy leads to change and change is painful.
Value – We must make sure the customer can measure the impact of our solution. Left to their own devices they may not have the knowledge or methods to quantify the savings.

9. Invisible Pain?
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10. Sales Metrics & Analytics
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11. Elimination of Waste Current State Future State Building A Product
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Building A Product
Building A Customer
Current State
Future State

12. Sales Executive Council – B2B Index 2009-2012
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15%
Pre-Sales Time
Access to prospects
Competing for time
Emphasis on solutions selling
26%
Sales Time
Reduced customer access
Cancelled appointments
Lower deal volumes
15%
Post-Sales Time
Constant reassessment of
current approach
Focus on account penetration
Proof for complex solutions

13. Factors Influencing Sales Metrics
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Longer life air filters.
Selling TCO.
Economy.
Internet/social media.
Predicting product trends & inventory.

14. Metrics for Profitable Growth
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#1 - Appointments (14/Week)
#2 - Opportunity pipeline (90 day value = growth target x closure rate)
#3 - Sales mix (60-70% 5 Star ratio)
#4 - Conversion rate (25% of opportunities)
#5 - Gross margin % by account/salesperson (35% - 5 Star products 40-60%)
#6 - New accounts added (2-4/month based on attrition).

15. Strategies for Sales Cycle Reduction
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16. 34% Paradigm Update – Social Media
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2 million search queries are conducted every minute
Viewers watch 3 billion hours of video per month
83% of Twitter users have attended college
34%
50% of all social media users are years of age
Of small businesses use social media to attract new customers

17. Prospecting Right technology Right technique Right audience
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Right technology
Right technique
Right audience
Right message
Right math (time & appointments)

18. Three “C”s of Prospecting
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Three “C”s of Prospecting
Concise
Convincing
Compelling

19. $1 to save $5-10? plus… R.O.I We’re Selling Math! Would you spend………?
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Would you spend………?
R.O.I
$1 to save $5-10? plus…
Improve indoor air quality by 30-40%.
Increase employee productivity by 6%.
Lower your healthcare experience cost factor.
Increase your sustainability profile.

20. Quantify The Cost of Delay
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“Research shows that people will do more to avoid a loss than to score a win.” Fortune Feb. 4, 2013

21. Savings per week not realized by delay of implementation = $1,072
Quantify The Cost of Delay
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Savings per week not realized by delay of implementation = $1,072
Large hospital LCC over 2 years based on:
AAF vs. 30/30 & Hi-Flo ES
10 cents per KWH
400 fpm and 24/7 hours of operation

22. Local Proof & Guarantees
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23. Coil, belt, fan maintenance Labor lost opportunity cost Roof repair
Filter Cost
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Energy Cost
Labor Cost
Disposal Cost
Transaction cost
Coil, belt, fan maintenance
Labor lost opportunity cost
Roof repair
Administrative & selection cost
IAQ cost

24. First Cost & Cost Per Year
Quick Cost Calculator
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= 3
First Cost & Cost Per Year
Ultimate TCO/IAQ

25. © CAMFIL FARR 2017-04-26 Increase your pipeline & use metrics
Use technology, technique & time
Measure your activity, behavior & results
Sell “math” at the right level
Remember “what we are selling”
Change “ to whom you are selling”
Don’t let “proof” delay the close
The right tool from the tool box
Develop local proof & guarantee materials
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