brief transformation guide for value added services sales

1. “Converting a company; from
product sales to product sales with
value added services”
Coskun Soyer

2. reasons for transformation
• Decreasing profit ratios are always problem even with increasing
sales
• However if only sales force is “product”, this is the “reason”
• Product is the only value which is offered to customers
“ even with quality”,
• But profit ratios of “the product” can not fulfill targets of company
• Value-added services, which are sold with products, are answers
for this kind of problems
• Idea is to force differentiation and improving profit ratios.

3. transformation steps
• When is the right time for transformation decision?
• What are the reactions from within the company to the new
focus?
• How will the company affect during the transformation phase?
• what are the new products?
• targets for long term…

4. when is the right time for transformation
decision?
• Timing is always important, right time is always “today”
With two
main
guidances
Keep in mind : Value addes services are answers for your
problems
But always with orientation
and master plan as follow……..

6. What are the reactions from within the company to the
new focus?
• Of course, it is not an easy issue,
• First mission is always with after sales department, this
department must transformed from cost center to profit
center. Many of new products will be developed by this
department.
• Second mission is with sales forces. We have to convince them
with value of service criteria. They aren’t considering value of
service as a product. Therefore workshops will be organized for
sales department.

7. How will the company affect during the
transformation phase?
• One of the most important fact about companies is loyalty of staff.
Many of them have working long years, therefore convincing them
is not an easy process, about sales of value added services as
products.
• Especially after sales department must work on very hard for new
products. On the other side they have to finalize some
systematical issues before product development such as “master
data”.
• Sales staff will be trained about value of service products. They
will learn that service offers will not be used for price competition.
• The new rule is important, service products are profitable and
ensure customer loyalty in long term.

8. what are the new products;?
• Maintenance agreements
• Entry product for value added service market which is
considered as first level product.
• Don’t worry, your customers are already demanding
maintenance agreements as long term.
• Some headlines;
• Service network trainings are important
• Call center will have an important duty to centralize
workflow

9. what are the new products?
• Extended warranties
• First rule; always keep in mind legal regulations of your
country
• For example : what is the market condition for common
warranty period?
• Give a decision for extended warranty period
• Always your best profit product

10. what are the new products?
• Insurance
• Of course it will be the most effective product
of your portfolio.
• Open a tender…
• Don’t forget!!! In some countries, brokers are
not familiar for these range.

11. targets for long term
Your story starts from this point

12. do’s
• Service network trainings
• designing of products with sales department support
• committee like “product portfolio council” for regular
communication and interaction
• Always show income effect to convince non supporters

13. Don’ts
• Never say “as a decision of HQ” to service
and sales network,
• Tracking of dealers and service network
(reports-competitions-etc.) shouldn't start
with beginning of project

14. THANK YOU
more details : coskun_soyer@yahoo.com.tr