
Expandability-Part 4
Subject: Sales, Upselling, Motivation,
Sales Success
By Victor Antonio
This
is the last of a four part series on selling ‘abilities’. In the
first three articles I covered Reliability,
Upgradeability and
Compatibility. I now want to turn
my attention to the subject of selling Expandability in the high tech
sales arena.
Expandability is a
term more associated with hardware as opposed to software. If there is
a point of convergence for software and expandability it would be on the
operating system itself.
For those of you
who’ve gone out and purchased a computer, one of the prime determinants
of whether or not to buy is how much capacity or memory does the
computer have. This is usually followed up with a question on how much
can you ‘expand’ the capacity later on down the road if needed.
When selling
expandability for hardware products, we are usually referring to the
physical limitations of the product itself. Since, in order to expand,
the system must have available ‘slots’ for system cards. In the case of
a computer, we usually want to swap out or add another processing board
to increase either system speed or memory capacity.
Selling Expandability
So how do you sell
expandability? Lets take two scenarios, 1) A computer for the average
consumer (Small sale), and 2) A Internet Service Provider who is
purchasing a telephone switch (Large Sale).
Small Sales
Strategy: It isn’t difficult to sell a customer on expandability;
especially if the buyer is a person who anticipates their processing or
memory storage needs growing in the future. But when it comes to the
average consumer who wishes to use the computer for basic internet and
family projects, the expandability feature is greatly diminished in its
ability to sway a customer’s decision. In a small sales scenario, the
key for the salesperson is to identify the technophile from the average
consumer. The question, “What are your plans for the computer?” should
allow the salesperson to clearly identify if the buyer is an average
consumer or a technophile. This template applies for any business model
in general. If the buyer is wanted a straight forward, for now
solution, expandability will do little to help close a sale. On the
other-hand, if the buyer is building out a network or a system and
envisions growth, the expandability feature will have some impact in the
sales process.
Large Sales
Strategy: When selling to a big customer who will be using the
product to provide service to others, expandability plays a major role.
Most start-up companies are unsure about the size of their customer base
or simply have little cash flow and can’t buy a full-blown system.
Expandability options allows a provider to buy into a system knowing
that expansion is possible and can be done on an incremental basis. In
the case of a Internet Service Provider, a chassis with telephone card
slots allows the provider to buy only the minimum amount of cards needed
to do business. In the case of a data center or a digital storage
facility, the providers will only purchase the amount of memory and
processing speed cards needed to service their customer. Some finer
points for large sales strategies when selling expandability are:
1) Most customers
will want to buy 10-20% more in backup cards or boards to hold in
stock. This is an additional revenue stream.
2)
All expandable
systems require a redundant power supply (i.e., backup power supply
card). This also adds sales revenue.
Selling expandability
starts with identifying who your customers are and their anticipated
needs for future growth. Whether it’s a small (computer) or large sale
(network switch), the qualifying question is whether or not they
anticipate a need for growth in the future. Selling expandability is
about selling the optimistic side of business and growth. Those who
see potential and growth for the future will be easy sells. Those who
are unsure about the future, well…it may not be so easy to sell them on
the concept of expandability.
Victor Antonio
is a Sales Trainer and
Motivational Speaker with 20 years of industry experience. He has a BS in Electrical
Engineering and an MBA.
Copyright © 2005 by Victor Antonio All rights reserved. This article MAY
be reproduced in any form or by any means, electronic or mechanical,
including photocopying, as long as the author’s name, website and email
address are included as part of the article’s body. All inquiries,
including information on electronic licensing, should be directed to Victor Antonio.
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