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CASE-7-2 Machinery Lubricants, INC. Question. If you were Rami, how would you plan the sales call? de docx Now lab MYWAY V Crooke Rank VitalSource
CASE-7-2 Machinery Lubricants, INC. Question. If you were Rami, how would you plan the sales call? de docx Now lab MYWAY V Crooke Rank VitalSource Book X 59269196/ch/243174/400.000.00 CASE 7-2 MACHINERY LUBRICANTS, INC. Rami Semchuk sells industrial lubricants for machinery to manufacturing plants. Tomorrow, Rami plans to call on the purchasing agent for Acme Manufacturing Company. For the past two years, Rami has been selling Hy- draulic Oil 65 in drums to Acme. Rami's sales call objective is to persuade Acme to switch from purchasing oil in drums to a bulk oil system. Last year. Acme bought approximately 364 drums or 20,000 litres at a cost of $1.39 a litre or $27.800. A deposit of $20 was made for each drum. Traditionally, many drums are lost, and one to two litres of oil may be left in each drum when re- turned by customers. This is a loss to Acme. Rami wants to sell Acme two 3,000-litre storage tanks at a cost of $1700. He has arranged with Pump Supply Company to install the tanks for $1.095. Thus, the total cost of the system would be $2795. This system reduces the cost of the oil from $1.39 to $1.25 per litre, which would allow it to pay for itself over time. Other advantages include having fewer orders to process each year, reducing the amount of storage space needed, and having workers handle the oil less. QUESTION If you were Rami, how would you plan the sales call? CASE 7-3 CASCADE SOAP
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