Prequalifying a Buyout Opportunity
Every time we get an inquiry for a non-stock item, we must make a decision.....do we regret or do we go for it? The decision should be based on a variety of factors which, for the experienced sales professional, has become a matter of muscle memory.
For the beginner or, as a brush up for more experienced salespeople, here is a quick guide to help you make the decision....
Pre-Qual Methodology
If the RFQ is received by email, it will often be tough to answer all the questions, but over the phone, we can develop a series of simple unobtrusive questions that will help us develop a score for the requirement.
Pre-Qual Decision Making Questions:
The Customer - Are They....
Repeat/ return customer – add 20 points
New, small customer – add 1 points
Another metals distributor - subtract 5 points
New/ Notable (GE, ITT, Lockheed, Boeing, etc...) – add 5 points
Purchasing Agent or buyer – add 5 points
Engineer – add 10 points
Student – subtract 5 points
From the Middle East – Iran, Israel, Turkey or former Soviet Union countries – subtract 10 points
Notes: In order to score this section, you will have to ask questions of the buyer and probably Google their company
The Metal, is it.....
In stock with one of our best suppliers? - add 5 points
Common grade and form (More than 20 distributors stock it) – subtract 5 points
Odd Size - add 5 points
Odd Grade – add 5 points
Odd Form – add 5 points
Notes: To score this section, you will need to run the RFQ in the MSO database. Take care to consider whether or not we can cut, open die forge, bore or otherwise fabricate what the client needs especially if their score from section 1 or 3 are high. IE – return customer or notable, with a rush requirement.
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The Delivery Required.....
Need it yesterday/ plant shutdown/ AOG – add 10 points
Just quoting – subtract 5 points
Notes: AOG is an aircraft industry term that means Aircraft on the Ground – essentially an emergency situation.
Pre-Qual Scoring
0-10....REGRET
11-25....MAYBE IF YOU'RE NOT TOO BUSY
26-40......LOOKS GOOD
41-60.....SLAM DUNK!!!! GO FOR IT!!!
This method can and will be tweaked by you and your sales manager and team. It represents a framework that you can use to build an in-house system of prequalification to optimize the time spent and profitability of buyouts.