Customer Sponsored Up-Selling

To protect the confidentiality of our client and their customer, we have not detailed names.

Profile

How do you know when you have an opportunity to effectively up-sell a Client?

Background

A salesman had just sold a $8,700 software module to a local airline operator to help it collect its cash faster. The customer contact had agreed that the module would reduce their days sales outstanding by one day.

Customer: "It's pretty easy to justify, as I'm sure it'll improve our days sales outstanding by at least one day. This alone will justify the purchase."

The salesman was happy to take the order but how much is the reduction in days sales outstanding really worth to the client's business? The customer offered the following information:-

• Client's Turnover $1,160,000,000
• Current Days Sales Outstanding 121
• Improved Days Sales Outstanding 120

Problem

How much is the solution worth in terms of value to the customer?

Solution

Run it through the Shark software and you will discover...

• Current debt outstanding $384,547,944
• Cash freed up $3,178,082
• Interest cost 6%
• Monthly savings $15,890

This saving alone would have supported a sale for $362,500 while the salesperson took the order for $8,700 and was happy. This was a major opportunity missed to solve many more problems with enhanced software and service offerings using the savings to justify the resolution of many more problems.

Result

If the salesperson had used Shark, they would have not walked away from a potential up-sell situation.

Opportunities like this should not be missed!

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