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Case Study ERP

The document discusses the challenges faced by a salesperson trying to sell a $900,000 ERP software to a prospective customer whose purchasing procedures may not align with the software's requirements. The salesperson realizes that additional customization costs of $250,000 are not in the client's budget, leading to potential job loss if the sale fails. Two suggested courses of action include disclosing the costs to the client or collaborating with management to find a solution, such as offering a deferred payment plan or a trial period to build trust and ensure a better fit for the client.

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Mirwais khan
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43 views2 pages

Case Study ERP

The document discusses the challenges faced by a salesperson trying to sell a $900,000 ERP software to a prospective customer whose purchasing procedures may not align with the software's requirements. The salesperson realizes that additional customization costs of $250,000 are not in the client's budget, leading to potential job loss if the sale fails. Two suggested courses of action include disclosing the costs to the client or collaborating with management to find a solution, such as offering a deferred payment plan or a trial period to build trust and ensure a better fit for the client.

Uploaded by

Mirwais khan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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For many months, your prospective ERP customer has been analyzing the hundreds

of assumptions built into the $900,000 ERP software you are selling. So far, you
have knocked yourself out to try to make the sale. If the sale goes through, you will
reach your yearly quota and get a nice bonus. On the other hand, loss of this sale
may mean you start looking for other employment.
The accounting, human resource, supply chain, and marketing teams put together by
the client have reviewed the specifications and finally recommended purchase of the
software. However, as you looked over their shoulders and helped them through the
evaluation process, you began to realize that their purchasing procedures – with
much of the purchasing being done at hundreds of regional stores – were not a good
fit for the software. At the very least, the customizing will add $250,000 to the
implementation and training cost. The team is not aware of the issue, and you know
that the necessary $250,000 is not in the budget.
What do you do?

Sample Answer-1:

There are following course of action that can be opted by myself in the given
situation:

1. I will convey the additional implementation and training cost of $25000 to the
prospective client. Since this amount is not in their budget then the sales
opportunity will be lost in all probability and I will lose my job. Though, I will
not be at the receiving end of the moral guilty or unethical conduct. After all, in
advance stage of implementation of ERP software, cost will be incurred and I
will be held accountable for not disclosing the information properly.
2. I will convey the finding of additional possible cost to my reporting boss and I
will sit with him to find solutions. One possible solution will be to plan and
breakup the additional cost over a period of time. Also, my reporting boss will
help to offer the waiver of some part of the additional cost at my company
end. Even, I will try to get a deferred payment plan for the prospective client.
Though, it can also cause reduced / delayed bonus payment but, I will keep
my head high as I have not misguided anybody.

I will go with the second solution (solution no. 2).

Sample Answer-2:

Though the Sales negotiation and final deal is agreed to from both the seller and
buyer, the seller realizes that the existing product is not a perfect fit for the
organization. The buyer though is certain that the given product specification will
match the exact requirements.

As a typical sales guy with emotional intelligence, you cannot directly ask the buyer
to customize it by putting in some additional $25,000 out of pocket expense. The
buyer might think that we are making him fall prey to our selling skills.
Rather, we can provide him a 10 day trial period or put a scheme wherein the user
can pay for ERP software but can get 100% money back guarantee if returned within
stipulated deadline. This will definitely muster support and trust from the buying
group.

By this way, the user will also come to terms with the on-ground requirements,
practical difficulties in implementation and customization of the ERP.

And he could come back with upgrading the customized version for the said amount.
So, that it can be a win-win situation for both the parties.

Hence, it will not be ideal to simply close the sales quota and turn blind by not
looking through the eyes of the buyer. This action will not lead to win-win for both
parties.

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