1. How to prepare Mafia Offers
under Lithuanian Circumstances
Nerius Jasinavičius
TOC sprendimai
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2. In a strong wind
even turkeys can fly
Old proverb
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3. Let’s do some reality check
Two questions ?
• Do you have some free capacity ?
• Is your market share less than 20% ?
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4. Reality check
Conclusions
• You have an opportunity for growth
• Your constraint is SALES
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5. Let’s go and sell !!!
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6. Houston,
we have a problem!
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7. Myth #1
We
(Lithuanian SMBs, UAB “Kažkokia“, ...)
are different !
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8. Unique situation and problems
•
•
•
•
•
•
Very strong competition
We are squeezed on prices
Where to find good sales people ?
Clients want discounts and discounts
Hard to balance cash-flow
Owner working 24/7
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9. Myth #1
Are we really different ?
Is it bad thing to be
different ?
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10. www.TOC.lt

11. Myth #2
If you have really good
product/service
customer will find you
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12. It is not enough to be good
• Some clients do not know you exist
• Some clients do not know they have a problem
(which you can solve)
• Some clients do not know you are better than
others
• Some clients do not see/understand the value of
your offer
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13. Myth #3
Marketing is about
branding
(and we cannot afford it)
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14. Challenge
• When the details of an offer are not clearly laid
out, it is easy to turn even the best sales offer
into a mess.
• When the details of the offer are
not constructed to mitigate risks
and ensuring benefits (to both
clients and the Company) the
outcome may be losing many good
sales opportunities and/or losing
profit margins.
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15. Challenge
• Pursuing wrong prospects is not just a waste of
valuable resources (money capacity time ) but it
can lead to the “conclusion” that the direction (or
the offer) is invalid.
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16. Before we go and sell
marketing has to make sure
• We know our target market (to whom
we will sell)
• We have detailed offer to target market
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17. Myth #4
Selling is an art
and only artists can do it
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18. Marketing and Sales
How to convince a specific prospect?
Sales
(Converting the market into money)
1. Directly dealing with prospects/customers
2. Closing a deals
Marketing (Creating markets)
1. Building a valuable offer
(identifying markets, constructing the offer features)
2. Building the awareness to the offer
(marketing channels, advertising)

19. Characteristics of a major sale
F Long sales cycle (Numerous meetings, over a relatively long period of time).
Major sales require true salespeople,
consult with others, prior to making the
F The prospect mustan emotionalwhobecomessales orders. decision
not just clerks level take a liability).
(Convincing only on
debates about the
F The significantthe meetings, whenpurchasing considerations
occur between
the salesperson is not present.
F Most major sales entail a continuous relationship with the prospect.
the salesperson and the customer must meet several times after
the sale is made. Therefore, it is not easy to separate between
the salesperson and the product.
if
F A major sale means a major decision –thatthe decision is wrong,
this also means a major mistake – one
cannot be easily
ignored or hidden.
-2-

20. Model for major sales
persuasion: Overcoming Resistance to Change
Rational persuasion
Overcoming rational
resistance to Change
Peeling the layers
of resistance
Irrational “persuasion”
Overcoming emotional/psychological
resistance to Change
Overcoming
Psychological barriers

21. Rational persuasion:
Overcoming rational resistance to Change
• There are different kinds of layers.
Not all of them exist, but if they do they
must be peeled off in a logical sequence.
• Trying to peel off an internal layer without first
peeling an external one will only intensify the
resistance.
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76
4
3
2
1

22. Layer #1:
There is no problem!
WHAT
TO
CHANGE?
Layer #2:
The problem is different!
Layer #3:
The problem is out of my control!
WHAT
TO
CHANGE
TO?
Layer #4:
I have a different direction for a solution!
Layer #5:
The solution does not address the whole problem!
Layer #6:
Yes, BUT the solution has negative outcomes…
HOW
TO CAUSE
THE
CHANGE?
Layer #7:
Yes, BUT there are obstacles to implement the solution

23. Lithuanian examples of
"Mafia-offers"
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24. Non-Lithuanian example
http://bedfordreinforced.com/wp-content/uploads/2011/06/Standard-Structural-Performance-Guarantee.pdf
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25. 1st example
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26. Who we are?
• Producer of labels and
packaging
• Modern and reliable partner
• 257 employees
• Anual sales 20 mln. EUR
• More than 1500 customers in
Lithuania and abroad
• 2600 orders a months in
average.
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27. Why inventory
management?
• Shortage in the warehose – lost
sales
• Surplus in the warehouse –
elimination off illiquid, frozen cash
• Costs of purchase management
• Human factor:
– “I think that…”
– „Needed it yesterday!!“
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28. What kind of inventory
management?
• Principal attitude: inventory
should be managed by
technology
• Technology should serve
people:
– clear, simple, user friendly
– specialized by functions
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29. The solution: StockM DBM
What’s next?
• Fear and lack of confidence
• 9 months pilot:
– Does it work?
– How does it work?
– What results?
• Introduction of service for the
customers
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30. Why for the customers?
• Packaging is cheap...
Packaging is cheap??
• Big order = small price:
– Surplus in the warehouseelimination of illiquid
– Loss of flexibility
– Bad cash flow
• Small orders = shortage:
– “Fires”- lost sales
– Increased costs of purchase
management
• Unreliability of forecasts
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31. Increase impossible decrease
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32. Customer inventory management based on StockM DBM
(Dynamic Buffer Management) principle
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33. Reaction
• “Oh, no no...”
• “Sounds interesting but it
won’t work in our case”
• “I have doubts but let’s try”
• Preparation
• Pilot project
• Discussion of results and
development
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34. Case study: expectations and results
Sales – Average inventory – Lost sales – Surplus - Turnarounds
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35. Case study:
expectations and results
• Lower storage costs – amount of
labels decreased by 48%
• Better cash flow – inventory
decreased by 37%
• Low/stable purchase management
costs – 46 orders without/minimum
involvement of customer
• Required items at the right time - 0
shortages or fires during the term
• Better planning of packaging
expenses – fixed price
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36. Smart warehouse: what did we
want to achieve?
– Manage and optimize inventory flow at the customer’s
warehouse with no load to customers accounting
system and no changes in it.
– Optimize our production process, improve production
planning and inventory control.
– Do not load customer with aditional work, share
data from our accounting system about supplied
items.
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37. 2nd example
www.AmVer.lt
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38. www.TOC.lt

39. www.TOC.lt

40. Are you ready ?
“Frame of Mind”
Ambitious
and possibly “frustrated” by missing opportunity
Complacent
“Life is Good” – ready to listen, not willing to move
Crisis
if this does not work - “it’s possibly our end”
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41. Questions
More info at:
www.VersloAkademija.lt
www.TOC.lt
www.AmVer.lt
www.CommonSense.lt
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42. Nerius Jasinavičius
• 7 years management
experience in IT, finance,
production sectors
• 9 years management
experience in business
consulting
• Certified LEAN and TOC
• Certified management
consultant
www.TOC.lt