1. Competing on Your Route
Module 6: Negotiation

2. Training Objectives
Discuss the differentiators that set Alsco apart from our competitors
Relate how competitors pricing can be confusing to customers
Recognize the steps used in selling in a competitive environment
– CARE Model

3. Know your competition Be a business consultant for your customer
Strengths and weaknesses – know our differentiators, or things that make us stand out
Understand our competitors billing practices
Low unit price vs. high ancillary charges
Low intro price vs. price increases
No competition bashing – our competitors do the best they can, teach your customer why we are better!
Try to see the proposals or invoices of the competitive bids – help your customer understand the invoices, and how their billing works

4. Our strengths and differentiators Describe to your customer the items that make us stand out
Live person on the phone for customer service
Multiple deliveries per week
Weekend deliveries
Flexible inventory management
One and Done service
A-track online invoice monitoring
Local plant/multiple plant support
American made linen
NSF certification

5. Understanding billing and pricing Your competitors will use confusing pricing that your customers may not understand
Low unit price vs. High ancillary charges
Ancillary costs are the charges for non-inventory items (loss charges, delivery charge, minimum charge, etc.)
Cost per unit will be low ( 5¢ napkin or a 9¢ bar towel)
Ancillary cost will be high to make up for the cheap price of the inventory items
Low intro price vs. Price increases
Sometime referred to as “cable tv” pricing
Inventory will be offered at low prices, but with no guarantee how long those prices will be in effect
Soon, price increases eliminate any savings

6. CARE Sales Model Dealing with competitors on your route
Connect with the customer
Determine if your customer is shopping with our competitors.
Look for signs of competition
Brochures
Business cards
Attitude of your customer toward you
Sometimes a customer will tell you she’s been offered a better price
Empathize - keep the customer in the conversation

7. CARE Sales Model Dealing with competitors on your route
Ask questions
Fair market questions, “Do you know …?”
Low unit price vs. high ancillary charges
Low intro price vs. price increase
“What competitor?”
“How much cheaper?”
“Can I go over their proposal with you?”

8. CARE Sales Model Dealing with competitors on your route
Relate features and benefits
Billing practices of competitors vs. Alsco
Differentiators that set Alsco apart

9. CARE Sales Model Dealing with competitors on your route
Express gratitude for the business
If customer will agree to stay
Offer a direct sale item (logo shirt from the catalog), or a logo mat
Offer an extended sample (All Fresh product)
If customer will not agree to stay
Buy time, empathize, keep the conversation going
Offer “Can I bring my manager in?”