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Multiple Question Approach. S ituation P roblem I mplication N eed-payoff questions Remember product not mentioned in SPIN!. Electric Motors, Inc. Producer of heavy-duty electric motors. SWOT Analysis. Strengths. Weaknesses. 5% greater efficiency. Requires less maintenance.

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multiple question approach
Multiple Question Approach
  • Situation
  • Problem
  • Implication
  • Need-payoff questions
  • Remember product not mentioned in SPIN!
electric motors inc

Electric Motors, Inc.

Producer of heavy-duty electric motors.

swot analysis

SWOT Analysis

Strengths

Weaknesses

5% greater efficiency.

Requires less maintenance.

Will last 20 vs. 15 years

  • Costs 25% more.
  • Costs 10% more to install.
electric motors inc1

Electric Motors, Inc.

Situation:

How many motors do you currently have operating?

200

How often do your maintenance people service the motors?

Every month.

How many people are on your maintenance crew?

50

What is the lifespan of your current motor?

15 years

electric motors inc2

Electric Motors, Inc.

Problem:

Have maintenance costs gone up as wages have risen?

Yes!

Have operating costs gone up as electricity prices have risen?

Wow! Have they ever!

I’ll bet it’s expensive to replace these every 15 years – in installation expenses - right?

Yes

electric motors inc3

Electric Motors, Inc.

Implication:

You’re spending a lot on electricity – have you considered trying to find a more efficient motor?

Yes, but they’re expensive compared to our current motor.

Yes, but what if these motors have lower maintenance?

Hmm, could be. But most are more expensive to install.

But what about the increase in lifespan of the motors?

Oh, I guess I was always concerned with up-front cost – I didn’t think about longer-term savings.

electric motors inc4

Electric Motors, Inc.

Need-payoff:

If I’m understanding you correctly, what you need is a solution that will save you money – either from a lower purchase price, or one that will save you money over the life of the motor – is that right?

Yes, I guess that’s true.

And that’s easier and cheaper to maintain?

Yes.

Maybe one that requires so little maintenance that you could send some of your maintenance people to other departments?

Yes, I’d be a real hero around here!

electric motors inc5

Electric Motors, Inc.

Lead in to Presentation:

I’d like to show you the specs on the Elmo 5000. I think you’re going to be pleased with the money you’ll save over the life of this motor!

Would that be of interest to you?

super service contract inc

Super Service Contract, Inc.

Provider of maintenance services.

swot analysis1

SWOT Analysis

Weaknesses

Strengths

On call 24/7/365.

Reps trained by us.

Factory parts – meeting all specs, and 100% in stock.

Equip only 10 years of 20 year lifespan, but maintenance is more expensive with time.

  • Contract costs $10,000 per year.
  • Factory parts 10% more than generics.
  • Equipment usually reliable.
  • New equipment coming down in price.
super service contract inc1

Super Service Contract, Inc.

Situation:

How many of your staff currently maintain equipment?

10 full time staff

Do they receive training on this type of equipment?

When they start – sort of spotty after that; mostly in-house.

How often does the equipment get serviced?

About twice a year unless there are problems.

super service contract inc2

Super Service Contract, Inc.

Problem:

Has the frequency of down-time been pretty consistent?

It’s broken down twice this year – before it was about once a year.

Has your staff been able to handle repairs?

Yes, except when the frammeter blew a modulator, then we had to special order parts.

When do breakdowns generally happen?

Ha! Sunday night at about 9:00PM when the system kicks back in to get the building heated up for Monday morning.

super service contract inc3

Super Service Contract, Inc.

Implication:

Whew! Does that cost a lot of overtime?

I’ll say!

Do you have the spare parts you need in those cases?

Sometimes – usually just the small parts.

What happens if the building doesn’t get warmed up by Monday morning?

The tenants, and my boss, are pretty annoyed.

super service contract inc4

Super Service Contract, Inc.

Need-payoff:

If I’m understanding you correctly, the equipment has begun to require more maintenance, which has increased operating costs. Is that correct?

Yes.

So if I can show you how to save money on maintenance – and how to keep the tenants, and your boss, warm on Mondays – that would be of interest?

Yeah, I guess it would!

And would it also be nice to increase effective useful life of the equipment 3 to 5 years?

Yes, that would definitely make my boss happy!

super service contract inc5

Super Service Contract, Inc.

Lead in to Presentation:

Would it be of interest to you to see how our service contract can accomplish these goals?