Question
You are the sales manager at XYZ Industrial Lubricants Co., Ltd., and your company sells industrial lubricants for machinery to manufacturing plants. Tomorrow, you plan
You are the sales manager at XYZ Industrial Lubricants Co., Ltd., and
your company sells industrial lubricants for machinery to manufacturing plants. Tomorrow, you
plan to make a conference call on the purchasing agent for Acme Manufacturing Company. The
participants from Acme include the purchasing manager, purchasing specialist, supervisor of the
production team, some employees who have used this oil.
For the past two years, you have been selling Hydraulic Oil 65 in drums to Acme. Your 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
liters of oil may be left in each drum when returned by customers. This is a loss to Acme.
You want to sell Acme two 3,000 - litre storage tanks at a cost of $1,700. You have arranged
with Pump Supply Company to install the tanks for $1,095. Thus, the total cost of the system
will be $2,795. This system reduces the cost of the oil from $1.39 to $1.25 per litre,
which will 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.
Questions:
1. What is your objective of making this call? 2 marks
2. What are the issues of using drums of oil? 2 marks
3. What are the benefits of using the new oil system? 2 marks
4. Among these participants, who will be the final user, decision-maker, influencer, and
goalkeeper? 4 marks
5. Now you are on the conference call with participants from Acme...
Use FAB technique to persuade Acme to accept your proposal and sign the contract
of adapting new oil system. write down the script. 10 marks
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