Mini-case 7 Bright Colors Paints

Michael Lee is sitting in the lobby of Columbia Area Painting waiting to meet with the owner, Paul Ferguson. Michael is a salesperson for Bright Colors Paints. He's here to speak with Paul because Columbia was just awarded the contract to repaint all of the city's public recreation facilities. The facilities that Paul's company will be painting include five city pools, two water slides, pool snack bars, and locker rooms, as well as the snack bars and storage buildings at five city-owned baseball diamonds.

The business potential for this meeting is large, and Michael wants to make sure he understands Paul's job requirements thoroughly before making a proposal. Michael is a little nervous about the meeting because, in his 14 months with Bright Colors, he has never made a sale this large. He has never been able to sell anything to Columbia because Paul prefers a competitor of Bright Colors as his principal supplier. After a few moments, Paul's assistant tells Michael he is ready to see him.

MICHAEL:

nervous and noticing his hands feel clammy) Mr. Ferguson, I'm Michael Lee with Bright Colors Paints. I'm very glad to meet you.

PAUL:

(looking and sounding gruff) Nice to meet you. Call me Paul. I suppose you know why I agreed to meet with you. Although we usually deal with a competitor of yours, I'm not sure my usual supplier can provide me with everything I need to complete this new contract with the city. They're supposed to contact me later today, but I'm not convinced they can provide me with what I need when I need it to complete this job.

MICHAEL:

(still feeling nervous about how this sales call will go) I appreciate the time you're giving me today, Paul. I found out about your contract to do work for the city Parks and Recreation Department when I was talking with Barb Montgomery, the purchasing director at Crestline Homes. I'm sure you are aware that Barb is on the city council. She told me that you might be interested in talking to me.

PAUL:

(his tone starting to soften a little while he sits straight up in his chair with his arms on the arm rests) You know Barb at Crestline? I did some work for Crestline when their own painters got behind on some jobs. Crestline builds a nice house. I didn't know your company provided their paint.

MICHAEL:

(beginning to relax some, given Paul's change in demeanor) Crestline was one of the first accounts I opened. We've been providing Crestline for over a year now. If you don't mind, I'd like to ask a few questions about your current needs with respect to the new contract before going on to suggest any particular paints.

PAUL:

(still sounding very businesslike while maintaining intense eye contact with Michael) Go ahead, but you can be sure that I'll be giving Barb a call to find out how you are to work with.

MICHAEL:

(finally realizing that Paul is not the most cooperative buyer he has ever met) I encourage you to call Barb. She'll give us a great recommendation. Tell me, how big is the contract that you were awarded from the city?

PAUL:

(sounding defensive) You know what, I wasn't awarded anything. I worked hard to win that contract. It took a long time to calculate my bid. I'm still not sure I'm going to make any money off it. To answer your question, I'm going to need approximately 3,250 gallons of paint.

MICHAEL:

(starting to settle into the interview) Do you anticipate any problems with respect to completing this job?

PAUL:

(rolling his eyes) Yes.

MICHAEL:

What kind of problems?

PAUL:

(looking out the window of his office while crossing his legs) Well, weather is a potential problem. I don't want to apply a coat of paint to a pool or building and have rain wash it off before it dries. Also, I have never painted a pool before. I suppose there are special paints for pools, but I don't know if they'll work with my equipment.

MICHAEL:

Would any of these problems harm your company if they were to happen on this job?

PAUL:

(sounding exasperated) What do you think? Of course they would.

MICHAEL:

If I can show you a paint that not only dries quickly but is also specially formulated for use on pools, would you be interested?

PAUL:

(uncrossing his legs and leaning forward) I suppose. Tell me what you've got.

MICHAEL:

Well, Paul, our new paint, QD21P, is just what you need for this job. The "QD" stands for "quick drying," while the "P" indicates that it is specially formulated for pools. The "21" means that the paint was developed in the 21st Century, so it's a brand-new product for us. What do you think?

PAUL:

(sitting up straight with his elbows and hands resting on his desk) You haven't told me much about the paint other than its name. What does all of that stuff mean?

MICHAEL:

The paint is quick drying, which you indicated as important. The paint is also suitable for use in pools. The paint is relatively new, so I'm not completely familiar with it, but it does meet some of your needs, doesn't it?

PAUL:

(folding his arms and leaning back in his chair) I suppose. What else do you want to know?

The interview lasted about another 5 minutes and proceeded along the same path, only the discussion centered on the buildings that need to be painted.

Questions1. Identify the type of approach Michael used in his sales call. What other options exist for approaching a customer and how can Michael change his approach to make it more effective?2. What do you think of Michael's use of the SPIN technique for determining Paul's needs? Develop additional SPIN questions that Michael can use to determine Paul's needs, to illustrate the problems that could result from not fulfilling those needs, and to get Paul to agree to hear a proposal on how Bright Colors can satisfy his needs.3. What nonverbal signals is Paul sending to Michael at each stage of the conversation?