"No, I can't be bothered to see any crazy salesman - we have a battle to fight!"

Recognize this? Wishing you had that one formidable argument to win the customer over?

Many years in various sales functions had DESC realize that especially larger firms suffer in their sales pursuits from inertia within the company. These firms are characterized by a strong differentiation of responsibilities, involving multiple parts of the organization both within the same office and from offices abroad. Rather then all being just colleagues, cost centers appear and customer-client relationships occur within the company itself. It is not surprising that within such a firm the sales department has little maneuverability: every request for engineering support or upfront R&D will increase the cost of sales and need to be justified. To obtain engineering (e.g. for a demo) or R&D support the pursuit needs to compete with already committed project or R&D work. In many cases the sales department is only left with the quality of the products, its engineering staff, the company’s reputation and the skills of the sales people to convince the customer.

When you sell products you can come a long way with this approach. When you sell solutions to customers you need to show how enginering services and products combined result in the best solution.
This is where extra engineering effort is required during the sales phase. What to do when this engineering support is not available or no R&D funding is possible?

This is where DESC can provide the ammunition to win your sales battle!
We developed a unique Pay-On-Award (POA) solution.

How does Pay-On-Award work?

DESC executes the R&D or engineering efforts upfront at its own risk.
DESC gets paid only on award of the pursuit

What are the benefits of Pay-On-Award?

  1. Higher chance of winning the project
  • The seller can already show concrete examples of its capabilities tailored to the customer’s situation in the sales phase – e.g. a customized demo.
  • The seller can offer a shorter project duration as work has been done upfront in sales phase.
  • The seller has a lower cost base as part of the R&D or project is executed.
  • Certain project risks are already eliminated.
  1. Better understanding of effort required.
  • With new applications seller runs the risk of under/over estimating the work required. Development upfront or during sales phase allows this to be considered and neutralized.
  1. Zero risk for the company
  • No up-front costs by seller
  • All interactions with the end-customer are handled by seller only.
  • DESC gets paid on award a percentage of the sales price.
  1. Extra resources and knowledge pool available
  • More people involved is more knowledge
  • More people provides additional execution capabilities
  • Access to DESC’s in-house knowledge base and skills

Pay-On-Award is a unique concept that minimizes costs and risks of the seller and at the same time dramatically increases his chances of winning the pursuit. For sales departments that are restricted by their own organization DESC offers a viable alternative.

 

Examples:

 

Case 1: Demonstration model
A company receives an inquiry for products or services they can provide, but for an application they have never done before. They know that competition already has a reference base and will be hard to beat, unless they can show in-depth knowledge of the application itself. A prototype or demonstration model would bring them in the race. Estimated internal cost: 50k€. No funding available.

DESC is invited to produce a demo model. Fixed fee price: 35k€ POA.

Seller responsibilities

DESC responsibilities

Provide spec of deliverable(s)
Provide all relevant documentation
Provide licenses/manuals of its relevant products
Keep DESC informed on sales progress

Use seller products to develop customized demo
Provide demo + documentation

 

Case 2: R&D effort
A company knows when it would have a product/solution of its own it would be able to sell plenty. No R&D budget is available in the near future and no alliances with technology partners are possible. The company turns to DESC for help.

DESC is able to provide a realistic prototype within 6 months based on first principles engineering concepts. Fixed fee price: 65k€ POA.

 

Seller responsibilities

DESC responsibilities

Provide spec of deliverable(s)
Provide licenses/manuals of its relevant products
Keep DESC informed on marketing effort

Perform literature search
Interact with research institutes.
Use seller products + internal tools for R&D.
Provide prototype + documentation
Provide feedback on complexity, pitfalls

 

 

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