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You were recently promoted to Sales Manager at PPG, a Fortune 500 paint supplier to the automotive industry. CarCo a major automotive manufacturer and current
- You were recently promoted to Sales Manager at PPG, a Fortune 500 paint supplier to the automotive industry.
- CarCo a major automotive manufacturer and current customer has recently launched a request for proposals (RFP), and your goal is to submit the best proposal possible.
- PPG Currently has the most of the business, and the customer expresses satisfaction with our ability to meet their requirements. The margins on the current business are very low because the customer insists on a 2% year over year price reduction.
- Your boss has helped you brainstorm three potential proposals that may help increase sales, but you need to figure out which one will help you keep the business at a reasonable margin or ideally profitably grow your business with this important customer.
- The purchasing manager has agreed to answer some of your questions about the RFP, but he prefers to chat via messenger so he can keep track of each interaction.
- Please make sure your questions are specific and self-contained. Avoid using pronouns like "it". For example, ask "How important is the paint line to you?" vs. "How important is it to you?"
Please help formulate some important questions to discuss with the purchasing manager. Include value based questions as well. 10 or more questions would be helpful.
Also which proposal would be the best:
Proposal1: Continue 2% year over year price reductions and focus on leaning out PPG production and logistics to improve profit margins.
Proposal 2: Fixed price with delivery and/or product performance guarantees focus on improving delivery and product performance.
Proposal 3: Sell paid value-added services while maintaining existing pricing.
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