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CCAASE PROBLEMS SE PROBLEMS case 3. case 3.11 Making the S Making the Switch witch Wendell Wilkie is a contrarian. Owner of Wilkie Technology, he developed a solution that is used by the U.S. Navy, Marine Corps, and the U.S. Coast Guard. When the U.S. government decided to expand the Navy, Wen- dell knew his sales would double. And because it would take decades for the Navy to reach the desired size, his sales would be steady—unless, of course, someone was elected President who decided to scrap the Navy's growth plans. So he decided he'd take his solution to commercial shipyards and sell for commercial applica- tions such as cargo ships, fishing vessels, and ferry makers. The solution is a coating that slows rust and can be applied to all metal above the water line. In military applications, he knows that it adds at least five years to the life of those metal components. Questions case 3.2 case 3.2 cBOH cBOH Maggie Fields is a relatively new salesperson for cBOH, a German company that sells equipment accessories that makers of manufacturing equipment add to their products or that can be added by the users. She was telling her boss, Bill Ford, about a call she just got from Becky Fires, the head of supply chain management for Stone Products, a mining company. "She said that Gil McIlroy, the company's production director, asked her if he could look into getting the new digital control system for their current production equipment," Maggie reported to Bill. "But she also said that the CFO was against adding more costs." The digital control system Becky referenced is an add-on to certain forms of expensive tools that enables the tool to connect to the user's Wi-Fi. Through this connection, the tool can provide information into a software program that can monitor usage, which can then be used to optimize uptime by optimally scheduling mainte- nance or alerting users to potential problems such as overheating. "Do you think she was serious about the costs?" asked Bill. "I think so." Maggie's face showed a lack of confidence in knowing the answer. "What I do know is that they have no budget set aside for it." "How will they determine a budget? And what will their process be in making a decision?" 1. 1. Should he sell to the users (fishermen, ferry operators, and shipping companies) the same way he sells to the military (who tell the shipbuilder what to use) or to commercial shipyards? Why? 2. 2. What would the likely buying center be if you decided to sell direct to shipyards? Who (by title) would you call on first? Would your answer change if you knew it added 5 percent to the purchase price of the boat or ship? 3. 3. Repeat question 2 question 2, but change the scenario to one in which you've decided to sell to the buyers of boats to get them to specify the product when they order the boat. 4. 4. Sketch out how you would apply life cycle costing to justify the additional cost. How would you go about using that tool to sell to shipyards? CHAPTER 3: Buying Behavior and the Buying Process 89

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