Dealers Working Together | DWT

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Dealers Working TogetherDealers Working Together

Complete OfficeComplete OfficeNorth Carolina USANorth Carolina USA

November 20, 2009November 20, 2009

Dealers Working TogetherDealers Working Together

I.I. Margin ManagementMargin Management

II.II. Vendor and Key Supplier ManagementVendor and Key Supplier Management

III.III. Marketing ManagementMarketing Management

IV.IV. Recruiting and Hiring ManagementRecruiting and Hiring Management

V.V. Training and Coaching ManagementTraining and Coaching Management

VI.VI. Customer ManagementCustomer Management

VII.VII. ProformaProforma

Complete OfficeComplete OfficeNorth Carolina USANorth Carolina USA

II.II. Margin ManagementMargin Management

a. Negotiationa. Negotiation [Primary [Primary

Wholesaler]Wholesaler]

BACKGROUND RESEARCHBACKGROUND RESEARCH

Vendor IntelligenceVendor Intelligence• BPIG – TRIMEGA – Major SuppliersBPIG – TRIMEGA – Major Suppliers• Primary Wholesalers – SP – US Primary Wholesalers – SP – US • Secondary & Specialty SuppliersSecondary & Specialty Suppliers• Support & Other Key VendorsSupport & Other Key Vendors

Top Gun Contacts = Best DealTop Gun Contacts = Best Deal Strengths & WeaknessesStrengths & Weaknesses Opportunities & ThreatsOpportunities & Threats Hunger For Your BusinessHunger For Your Business

• Findings Findings • ConclusionsConclusions• RecommendationsRecommendations

ACCOUNTS PAYABLE ACCOUNTS PAYABLE REVIEWREVIEW

Master List of VendorsMaster List of Vendors

Identify AllIdentify All

Their Products & ServicesTheir Products & Services

Contract TermsContract Terms

How Much SpentHow Much Spent

Conclusions & RecommendationsConclusions & Recommendations

CONSOLIDATE CONTRACTSCONSOLIDATE CONTRACTS

Estimate Spend With Each Estimate Spend With Each VendorVendor

10% Out of Each “Strategic” 10% Out of Each “Strategic” SupplierSupplier

Conclusions & RecommendationsConclusions & Recommendations

VENDOR SELECTIONVENDOR SELECTION

Clear Answers to “Why”Clear Answers to “Why”

Performance Metrics*Performance Metrics*

Contract TermsContract Terms

““Vendor’s Shoes” Formal ReviewVendor’s Shoes” Formal Review

DWT ProformaDWT Proforma

Selection CommitteeSelection Committee

*PERFORMANCE METRICS*PERFORMANCE METRICS

Metrics Are The FoundationMetrics Are The Foundation

You get what you measure, not what is in You get what you measure, not what is in the contract.the contract.

Choose metrics that support your goals Choose metrics that support your goals and reward the behavior you want to and reward the behavior you want to encourage.encourage.

--Dealers Working Together--Dealers Working Together

GOAL SETTINGGOAL SETTING

Target CostsTarget Costs

Compare To Industry Top Compare To Industry Top CompetitorsCompetitors

Set Your GoalsSet Your Goals

““Favored Customer” ProvisionFavored Customer” Provision

Get All in Writing & Org ChartGet All in Writing & Org Chart

Prepare to NegotiatePrepare to Negotiate

NEGOTIATIONSNEGOTIATIONS

Never Offer To Split The DifferenceNever Offer To Split The Difference

Get Them To Split The DifferenceGet Them To Split The Difference

More For Your MoneyMore For Your Money

Not Budging Enough On Price?Not Budging Enough On Price?

Ask For Extra Services & SupportAsk For Extra Services & Support

Lowest Price Not Always The Best Lowest Price Not Always The Best PricePrice

KILL THEM WITH KINDNESSKILL THEM WITH KINDNESS

Calm, Polite & Personable Calm, Polite & Personable NegotiationsNegotiations

Build Relationship While Build Relationship While NegotiatingNegotiating

They Will Feel GoodThey Will Feel Good

And Go The Extra MileAnd Go The Extra Mile

WE MAKE THE FIRST OFFERWE MAKE THE FIRST OFFER

DWT Set The AnchorDWT Set The Anchor• Conversation Will FollowConversation Will Follow• Force Vendor To Justify Any Changes To Force Vendor To Justify Any Changes To

Anchor Anchor • Stick To Initial TermsStick To Initial Terms

Never Say Yes To Their First Offer Never Say Yes To Their First Offer BackBack

• Could We Have Done Better?Could We Have Done Better?• Something Must Be Wrong?Something Must Be Wrong?

Cannot Say Yes To First Offer BackCannot Say Yes To First Offer Back

FRAME THE NEGOTIATIONSFRAME THE NEGOTIATIONS

Potential Loss vs. Potential GainPotential Loss vs. Potential Gain• Point Out What Vendors Stand To LosePoint Out What Vendors Stand To Lose• Not Doing Business With YouNot Doing Business With You• Benefits Of Doing Business With YouBenefits Of Doing Business With You• Support VendorsSupport Vendors

Alternatives: Greatest Source of Alternatives: Greatest Source of PowerPower

• Have Alternatives ReadyHave Alternatives Ready• Best Possible Deal?Best Possible Deal?• Might Go Elsewhere = We Have OptionsMight Go Elsewhere = We Have Options• Prepared To Walk AwayPrepared To Walk Away• Watch Their Offer ImproveWatch Their Offer Improve

PATIENCE IS OUR VIRTUEPATIENCE IS OUR VIRTUE

Longer The Negotiation = The Longer The Negotiation = The BetterBetter

Get What We WantGet What We Want

Little Bit At A Time “Tug Boat” Little Bit At A Time “Tug Boat” StrategyStrategy

Decision to Move Forward . . .Decision to Move Forward . . .

DWTDWTDEALERS WORKING TOGETHERDEALERS WORKING TOGETHER

SILENCE IS GOLDENSILENCE IS GOLDEN