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Better proposals, bigger profits with IBM Global Financing Sell more, win more and drive more profit
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Better proposals, bigger profits with IBM Global Financing Sell more, win more and drive more profit
Introduction
IBM Global Financing can help you to provide your clients with a valuable service, making it easier for you to sell more hardware, software and services. It's a critical lever for you to improve your win rates, increase your profits, enhance your cash flow, expand your pipeline and increase customer satisfaction. By the end of this module you will be able to: Know IBM Global Financing
Understand the benefits to you of leading with financing Present the features and benefits of IBM Global Financing to your customers List the IBM Global Financing key tools and offerings Know when and why to offer IBM Certified Pre-Owned Equipment
Understand the four sales process steps Identify the target clients and their business needs Explain the IBM Global Financing value proposition Identify the top challenges to sell IBM Global Financing Explain the competitive differentiators Explain how IBM Global Financing contribute to Smarter Planet Communicate the value of IBM Global Financing in sales conversations List the actions to do to start selling with IBM Global Financing
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Better proposals, bigger profits with IBM Global Financing Sell more, win more and drive more profit
Menu
Know IBM Global Financing Visit this section to have an overview of IBM Global Financing. How selling IBM Global Financing benefits your business Key features and benefits of IBM Global Financing Benefits of financing for your clients How IT financing helps clients to control costs IBM Global Financing key offerings IBM Global Financing leases and loans IBM Global Financing tools IBM Certified Pre-Owned Equipment
Sell IBM Global Financing Visit this section to learn about selling IBM Global Financing. Sales steps you need to follow Target clients and business needs Client pain points How IBM Global Financing can address CIO's challenges How IBM Global Financing can address Financial Decision Maker's challenges Business Partner financing case studies High Performance selling with financing Top challenges to sell IBM Global Financing Top challenges to sell IBM Certified Pre-owned Equipment Competitive Differentiators IBM Global Financing helps fund a Smarter Planet Scenario exercise Act now with IBM Global Financing Conclusion
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Better proposals, bigger profits with IBM Global Financing Sell more, win more and drive more profit
http://www.ibm.com/partnerworld/knowyouribm
Better proposals, bigger profits with IBM Global Financing Sell more, win more and drive more profit
Win more
36% increase (*) in win percentage when financing is included in BP owned server and storage opportunities.
(*) Source: IBM Market Intelligence Data Analytics "Win More" study of Siebel opportunities.
Financing helps reduce pressure to discount. When clients ask for a better deal, financing gives you alternatives to a price discussion and helps you close the deal.
Competitive advantage to help you meet client needs and profit in the new economy Unmatched portfolio of offerings from working capital to leases and loans as well as IBM Certified Pre-owned Equipment Tools & expertise to simply and effectively integrate financing into your business
http://www.youtube.com/watch?v=yXiz2N6AN4&list=PLBCEE9D251AF7DE3C&index=2
Video: How IBM Global Financing can help grow your business. Duration: 2:57
http://www.youtube.com/watch?v=SMexA9gpgp0&list=PLBCEE9D251AF7DE3C&inde x=8
Video: How IBM Global Financing can help grow your business. Duration: 2:40
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Better proposals, bigger profits with IBM Global Financing Sell more, win more and drive more profit
36% increase* in win percentage when financing is included in BP owned server and storage opportunities.
Obtain leases and loans on the total solution: Package hardware, software and services into a single monthly payment (both IBM and non-IBM) - including your BP services.
(*) Source: IBM Market Intelligence Data Analytics "Win More" study of Siebel opportunities
When the customer likes your proposal, but asks for a better deal:
Without financing, you can either say 'no' or negotiate on price With financing, you have the opportunity to offer alternatives that help you reduce the pressure to discount, maintain your margin and close the deal
Example: "You have my best price... I can spread the cost over one year, interest free" "How about a 3-year lease with no payments for the first 90 days?" "Shall we consider IBM Certified Pre-owned Equipment genuine IBM equipment - at a lower price?" Maintain the financial footprint to strengthen your relationship with the account
o o o
Mid-lease sales opportunity End of lease replacement opportunity Financing creates "impending events" for IT decisions. As a result, financed accounts typically grow faster than clients who purchase without a financing facility
Unmatched portfolio of offerings from working capital to leases and loans as well as IBM Certified Pre-owned Equipment Enjoy faster growth from financed customers Typically financed customers grow 30 - 40% (*) faster than those who purchase outright Earn a financing fee - IBM Global Financing commission on eligible transactions can boost a deal's
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Better proposals, bigger profits with IBM Global Financing Sell more, win more and drive more profit
profitability
(*) Source: IBM Market Intelligence Data Analytics "Grow More" study of financed clients.
Feature: Financing simple loans and leases helps to preserve cash and credit lines for more strategic investments. Benefit: Financing can improve key financial metrics such as return on assets or debt to equity ratios.
Feature: Leasing helps match project costs to anticipated benefits and accelerates implementation of attractive new technologies. Benefit: FMV leasing can also reduce Total Cost of Ownership (TCO): the total cost of operation can actually be lower than outright purchase.
Feature: IBM Global Financing offers simple loans and leases to meet your individual budget, project or firm requirements, e.g. uneven cashflows, or upfront payment of holidays. Benefit: Financing gives you the ability to implement the project when it's needed. Implementation costs can be reduced, returns can be realized faster.
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Better proposals, bigger profits with IBM Global Financing Sell more, win more and drive more profit
Companies can see savings up to 12% over outright purchase with Fair Market value leasing, which conserves cash that they can use to innovate and grow5.
Source: Gartner-Forbes 2012 Board of Directors Survey, June 28, 2012 - Report # G00235863. (2) Source: IBM CEO Study MM view 2012. (3) Source: Small Business Majority, Main Street Alliance and the American Sustainable Business Council, January 26, 2012. (4) Hypothetical example using list prices; Monthly IBM Global Financing rate based on 36 month FMV lease on the hardware and loan on software and services with "Best" credit rating and ValuePlan lease. (5) Represents Net Present Value savings over a 36 months period for an IBM hardware Fair Market Value lease from IBM Global Financing with a "best credit" customer and including an assumed value for the customer's cost of capital of the US prime rate.
(1)
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Enables credit qualified clients of IBM and Business Partners to lease or finance their acquisition of IT solutions including IBM and non-IBM hardware, software and services. Some of the offerings are: IBM Systems Get a 0% 36-month FMV lease on the eligible hardware -plus Solution Financing 0% interest on software, other hardware and services- all for one rate, on one contract, with one monthly payment. Unlike some 'as low as' zero offers, all credit-approved clients pay purchase price/36 months. Eligible Hardware North America: IBM System x, IBM Power Express Systems, Power Blade Servers and Storage midrange disk systems. Eligible hardware in the UK, Germany, Denmark, Sweden, Norway and Finland: IBM System x. IBM eligible hardware financed on 36 month fair market value lease; all other items financed on 36 month loan. Deal sizes vary by country. Other restrictions may apply. 0% interest rate offer on IBM Software for 12-month terms is ideal for virtually all clients, especially those with tight budgets Take the price of IBM Software and divide by 12 - and bid that monthly payment to your credit qualified client (Countries with quarterly payments, divide by four) Available for credit qualified clients in most countries worldwide where IBM Global Financing does business In addition, financing rates as low as 0% for 2 and 3 year terms for most Lotus Software Products (excluding Lotus Live) Additional restrictions may apply
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Help clients move to IBM technology! Move up to IBM's next generation Power technology and obtain a huge boost to your client's capacity and processing performance with potentially minimal budget impact. IBM Global Financing can help credit qualified clients free up cash generate savings faster- and potentially lower their monthly payments when they replace their existing technology with IBM's newest Power processors. Available in most of the countries in which IBM Global Financing does business. 0% financing available on a 12-month full payout lease. Product eligibility varies by country: NA: All IBM Systems Storage products and most IBM Power System products (Power products excluded: 9117, 9119, 9125, 9179) Europe and GMU: IBM Power Systems, IBM System x and IBM Storage (varies by country) Through simple loans and custom leases, we can establish affordable monthly rates and customized payment structures to help make your cloud and analytics solutions attainable for your clients. Boost your sales and profits with PureSystems financing Up and running without the upfront cost Get IBM PureSystems with no payments for 90 days Fair market value leasing makes it even easier for your clients to acquire IBM appliances by lowering their total cost of ownership. Includes DataPower, ISS, Netezza, PureApplication System, PureData Systems and more coming in 2013.
Working capital for your business
Financing for advanced technologies such as Cloud and Analytics Financing for PureSystems Appliances financing
Provides credit qualified companies with working capital to finance day-to-day operations or grow their businesses using asset-based lending. IBM Global Financing's Commercial Financing offerings include: Receivables Receivables Financing accelerates Business Partner cash flow Financing by enabling businesses to borrow against the value of their receivables and/or inventory, which the business expects to turn into cash in the near term. Inventory Our inventory financing offering provides up to 100% advance Financing rates with free financing periods up to 90 days for approved vendors, as well as early payment discount options in many countries. We provide financing for hardware, software, and services from IBM and non-IBM suppliers, manufacturers, and distributors. Payables With the Trade Payables Program from IBM Global Financing, Financing (where you can get paid on your IBM accounts in as little as 15 days, available) instead of according to your normal terms. It's an easy way to improve cash flow without having to increase bank borrowing.
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Better proposals, bigger profits with IBM Global Financing Sell more, win more and drive more profit IBM Certified Pre-owned Equipment and asset buyback
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Recovers value, remarkets used equipment and parts, and recycles equipment at "end of life" in accordance with environmental laws and regulations. Global Asset Recovery key offerings are: IBM Certified PreIn the event that client budgets are tight, or you run the risk of Owned Equipment losing to competition based on price, you can still make the sale by offering IBM Certified Pre-owned Equipment with the ability to define your own profit margins. Global Asset Recovery Services offers include customized IBM Certified Pre-owned servers, storage and PC products with purchase or financing options. For clients running older equipment who are unwilling or not able to upgrade; IBM Certified Pre-owned equipment can give the customer additional capacity, provide parts or replace broken equipment. This provides you with a reason to call, bridges the customer until they can complete an upgrade and helps prevent switching to a lower cost competitive platform. IBM Certified Pre-owned equipment is also an affordable alternative for back-up and recovery or short term IT projects. Provide your clients with an affordable upgrade option to take advantage of the latest eligible Server and Storage platforms, using a non-disruptive side by side migration approach. Our Systems Exchange offerings minimize the financial impact of migrating to the latest technology, by providing a fair market value credit for your client's current system. When a client is replacing existing hardware, IBM Global Financing can buy their marketable assets to assist you in selling IBM equipment and free up funds for their new IT investment. Through our asset buyback program, we can provide your clients with fair market cash value for their qualifying retired assets and dispose of their used equipment, in a hassle-free manner and in compliance with applicable environmental laws and regulations.
Asset buyback
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Available for all types of depreciable assets. At the end of the lease, the title is transferred to the lessee once all payment obligations have been met. Clients who desire future ownership of assets should consider a full payout lease. Client Benefits: During the lease term, the lessor retains ownership of the equipment and the lessee is entitled to its use while leveraging the periodic payments of the full payout lease to ease the financial burden of the IT acquisition. Payment can be tailored to suit clients' specific budgetary or cash-flow constraints, for example step payments and payment deferrals. Loans With this option the client pays back the money which the financier provided. The money loaned may be used to pay software license, charges for services, or purchase equipment the client would own.
Loans
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https://www03.ibm.com/financing/us/contact/index.html
Rapid Financing App Rapid Financing App
The new Rapid Financing mobile app lets you include financing options in your client deals quickly and easily while on the road. You can
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simply enter some basic information about your solution and client to get financing quotes, credit approval and contracts in minutes.
Availability Live in US Nov 2012, rolling out to over 30 countries in 2013. See for yourself how easy it is to lead with a monthly payment using the Rapid Financing mobile app. Explore our demo and get started today http://youtu.be/N3na4yRmLNA
Rapid Financing Calculators Online calculators available allow you to obtain instant monthly payment estimates for your clients. Available in 29 countries worldwide. Account Management Tool (AMT) A powerful, integrated suite of advanced online functions for accessing and managing all aspects of your account, 24/7 including: account summary, list of schedule payments, electronic statements, remittances and more. Private Trading Exchange tool (PTX) PTX allows distributors and Tier 1 Solution providers to get IBM Certified Pre-owned Equipment price and inventory availability.
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70% of clients are buying pre-owned equipment (*) Sell IBM Certified Pre-owned Equipment when budgets are tight Additional financing available to credit stressed clients when they acquire IBM Certified Pre-owned equipment Sell exchange upgrades for additional revenue and a protected upgrade path
(*) Source: IDC 2012 & Beyond -Technology Strategies and Tactics for Maximizing IT Value
Tier 1 Solution Providers can order IBM Certified Pre-owned Equipment using the Private Trading Exchange (PTX) tool. PTX is a password-protected Web site designed specifically for resellers of pre-owned IT equipment, with real time response, providing on-demand access to a variety of preowned equipment buying opportunities. PTX allows you to get IBM Certified Pre-owned Equipment price and inventory availability, including Request for Quote (RFQ) for unique requirements. Tier 2 Solution Providers can place orders for IBM Certified Pre-owned Equipment directly with their distributors.
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Prospecting
Your search for (new) customers Look for opportunities in your existing install base How to deal with objections and leave the door open for future sales Introduce yourself, state your purpose, qualify, plan next steps Becoming a Sales Consultant Understand customer needs Identify problems your products, services and financing can solve Understand competition Help your customer understand the business implications of the problem and move from problem awareness to solution commitment How to avoid wasting your valuable time in chasing prospects who will never become customers Make sure the solution solves the customer's problem Find out if the customer sees the value of your product Confirm that the customer has the budget to purchase and determine if ready to purchase Talk to the right person, who can make a buying decision Basic pointers to winning Close from the beginning Recognize when potential customers are ready to buy Note that free trials often lead directly to sales Choose from the IBM portfolio of migration or consolidation assessment tools and incentive offerings to open doors with customers and progress deals
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Project requires upfront payment Project has multiple vendors for hardware, software and services Client wants to reserve cash for other projects Client wants the flexibility to add or upgrade their hardware Client is starting an intensive project that may have a multiyear cost recovery period Client is financially sound but experiencing a short-term budget challenge Client wants the lessor to dispose of the hardware at end of life Available to credit-qualified clients in over 50 countries (click the map to see available countries) Valid for companies with at least 10 employees Valid for deal sizes greater than USD 5,000 or local country equivalent
Availability
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Availability
North America: Canada USA Growth Markets: Japan Argentina Australia Brazil Bulgaria Chile China Colombia Croatia Czech Republic Ecuador Egypt Hong Kong Hungary India Malaysia Mexico New Zealand Peru Philippines Poland Romania Russia Serbia Singapore Slovakia Slovenia South Africa South Korea Taiwan Thailand Turkey UAE Uruguay Venezuela Europe: Austria Belgium Denmark Finland France Germany Iceland Ireland Israel Italy Luxembourg Netherlands Norway Portugal Spain Sweden Switzerland UK
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Financial decision maker pain points I need to reduce costs, Financing helps accelerate a projects cashflow breakoptimize cash flow, event point and better align costs to expected benefits. Fair and improve Return Market Value (FMV) lease options can improve ROI when On Investment (ROI). compared to an outright purchase. Our financing for your total IT solution can help you control cash flow and manage risk with predictable, fixed costs. In order to help clients reduce cost and manage liquidity, cash flow and payments, IBM Global Financing offers:
Leasing as an attractive alternative to purchasing Industry-leading low rate financing Flexible payment options
IBM Global Financing offers you IBM Certified Pre-owned Equipment, refurbished, tested and with a 90-day quality satisfaction guarantee, it can provide you with an economical solution in lieu of new hardware. IBM Certified Pre-owned Equipment can provide a costeffective alternative when matching, upgrading or adding to your present equipment. IBM Global Financing provides an additional funding source that helps maximize liquidity and allows you to free up cash, helping companies preserve capital and lines of credit for core business needs. Acquiring an IBM solution has never been easier or more affordable for credit qualified clients. Packaging your IT solution with financing simplifies budgeting and planning, cuts costs and gives you peace of mind to know precisely what you'll owe each month. IBM Global Financing offers credit qualified clients access to affordable leases and loans for a complete IT solution for both IBM and non-IBM hardware, software and services. Most offerings are available to credit qualified companies with as little as 10 employees and transaction sizes as low as USD 5,000 (or country equivalent).
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IT/business decision maker pain points I need to improve our IT FMV leasing can lower total cost of ownership by as infrastructure while much as 12 percent (*) over outright purchase. lowering costs and Programmatic IT refreshes can help lower ongoing mitigating risk. maintenance and support costs.
(*) Represents Net Present Value savings over a 36-month period for an IT infrastructure Fair Market Value lease, "best credit" customer. Current IBM Global Financing monthly rates for IBM hardware used to calculate present value savings. Savings can vary according to hardware platform.
I need to develop a proactive plan for our IT refresh and upgrade management needs. I need to simplify the administration of our IT assets across the enterprise. I need to mitigate our technology obsolescence risk and equipment disposal issues.
Flexible, mid-lease and end-of-lease options can help you adapt your IT strategy to changing market and cash-flow conditions, and lower ongoing maintenance and support costs with leasing-based refreshes. Leasing can help ensure timely replacement of equipment. Our online asset-management tools can help you control costs and better manage your IT assets. FMV leasing shifts IT obsolescence risk to IBM Global Financing. Our end-of-life services minimize costs, administration and liabilities of asset disposition.
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Budget forecasting
IT refresh and upgrade management Asset management and tracking Technology obsolescence
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How financing can help Reduce up-front costs and better align costs to expected benefits Additional funding source to free up cash and preserve credit lines for core business needs Manage risk with predictable fixed costs Help ensure optimization with leasing refreshes Renew, return or extend lease at the end of term Improve ROI with FMV leases that are lower in cost on a PV basis than outright purchase
Maximize liquidity
http://www.livestream.com/ibmpartnerworld/video?clipId=flv_da71f9fd-173d43fb-83a3-f8a4ecb8d86d
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The need: hampion Solutions Group knew they were losing some business on price and the availability of older technology. Some companies cant afford new equipment every time they needed to do an upgrade or expand their legacy environments. In order to help these customers protect their investments they would need someone that specializes in used equipment.
Champion Solutions Group The solution: The benefits: Champion BM Global Financing provides: Solutions Group saw the need for Access to a large inventory of older technology IBM Certified Pre-owned at a lower cost equipment, upgrades and that is certified features and has the Online pricing tools that ability to be provide the quickest, most placed on accurate and best possible maintenance. price and turnaround Champion uses A 90 day satisfaction IBM Certified guarantee and IBM Pre-owned maintenance options Equipment as an important strategy element for keeping customers and growing business.
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Celerity UK: How a BP leverages financing to improve their own business. The need: The solution: The benefits: Although their Celerity made IBM BP closes deals more quickly customers readily Global Financing an and receives payments faster understand the integral part of its and more predictably value of IT business. As the BP increased its infrastructure company expected, competitiveness in the IT solutions, their financed sales help services market, due to Global Financing competitive rates, and stretched IT budgets it build customer flexible quoting capabilities delayed some relationships, IBM Global Financing helps customer manage working Celerity manage its working agreements, and capital and reduce capital more effectively and made them trading risks. pay less for credit extremely reluctant to spend. Furthermore, even after contracts were established, Celerity sometimes received payments intermittently.
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The ability to win more often and close deals more quickly by changing a large upfront capital outlay to manageable payments Reduce the pressure to discount by offering leasing terms The generation of more repeat business mid-lease and end of lease options, which provide a reason to continue to call customers Financing can remove the immediate budget concerns and changes the discussion with the client from "what can you afford right now" to "what solution do you really need to meet your business objectives"
We know that those salespeople in the IT industry who are "financially literate" make substantially more money than average and are more likely to fit the profile presented below. Financially literate salespeople in the IT industry are dramatically different than the other 75%. Financially literate salespeople:
have higher close rates than those who are not financing literate have larger transaction sizes have higher transaction yields get paid faster have fewer collection problems have more noncompetitive deals have longer tenure at their employers make more money
(*) Source: 2012 Channelcorp white paper: High Performance Selling with Financing
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Better proposals, bigger profits with IBM Global Financing Sell more, win more and drive more profit
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Better proposals, bigger profits with IBM Global Financing Sell more, win more and drive more profit
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Flexible
Competitive rates
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Better proposals, bigger profits with IBM Global Financing Sell more, win more and drive more profit
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Better proposals, bigger profits with IBM Global Financing Sell more, win more and drive more profit
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The objective for the scenario is to provide you a low-risk environment for the reproduction of real-life business situations, to prepare before carrying out any operation directly with a client which may affect your business results.
In following screens you will be presented a real-life situation and a number of alternatives from which you must choose the best option in order to proceed. The estimated time for this exercise is about 5 minutes.
Scene 1
You have just finished drawing up a quote for your customer, a chief information officer in a midsize medical company: "I like your solution but the costs are too high for our budget allocation. We need to increase our server performance and reliability at a lower cost." What would you tell him?
Options "Financing can help you fund your IT investment. Can I put together some monthly payment options for you that would fit your budget?"
Result Go to Scene 2
Feedback
"You should explore the possibility of financing. Leasing could also be an attractive alternative for you"
"Financing can help you fund your IT investment. Can I put together some monthly payment options for you that would fit your budget?"
Alluding the possibility of financing is a good reply to this customer in order to keep the door open to that option.
However, this comment doesn't make any mention that IBM can help with financing. By completing your arguments offering the IBM Global Financing services you increase your competitive advantage to help the client meet his
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needs and profit in the new economy. What's more, It's quick and easy to get lease quotes and contracts through our Rapid Online Financing tool. Although this is not the best answer, it remains an effective way to continue driving your sales effort. This customer has considered your quote, but due to economic constraints he is delaying the buying decision. As a sales consultant you should offer alternatives to facilitate the sale. Remember some of the items on the four sales steps:
Identify problems your products,
"Perfect! And remember that we can make adjustments to lower that price. Just call me when you make a decision"
Scene 2:
"Did you know that you can finance the total solution of hardware, software, services and maintenance for both IBM and non-IBM IT content?" "We prefer to pay cash for IT Purchases."
Result The customer put the financier business card into his desk and forgot about you.
Feedback This customer is not taking into account any financing option although he sees the need of increasing server performance and reliability at a low cost. Leaving the next step in his hands may cause you to lose the opportunity to close your deal and also to increase the contract by adding additional products and services. As a sales consultant you should offer alternatives to facilitate the sale. Remember some of the items on the four sales steps:
Make sure the solution solves the
customer's problem "Is this because you think it is difficult for you to "IBM Global Financing can simplify the financial management of your project by customizing Alluding to the difficulty they could have to access financing is a good reply to this customer in order to keep the door open to that option. To help on this you've got
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access financing?"
payments and terms to match project costs with anticipated benefits. As you know, cash is a limited asset, many CFOs are interested in hearing about an alternative source of credit that doesn't impact their current bank lines providing you with greater flexibility."
an important tool in your tool kit. You are partnered with IBM Global Financing and when you go forward with a solution to your clients, you have the ability to offer them an alternative source of cash at competitive rates and very flexible terms. For the IT Manager, you're taking this large expenditure that they would normally need to ask for and turning it into affordable monthly payments that they can manage within their budget so that they can convince the CFO that it's time to make the investment.
Although this is not the best answer, it remains an effective way to continue driving your sales effort. "IBM Global Financing can simplify the financial management of your project by customizing payments and terms in order to match project costs with anticipated benefits" Go to Scene 3
Scene 3
"As you know, cash is a limited asset; many CFOs are interested in hearing about an alternative source of credit that doesn't impact their current bank lines, providing you with greater flexibility."
"We keep our assets for at least four years, so ownership is cheaper than leasing."
Options Result "Fair market value Go to Scene 4 leasing is often the easiest, fastest and most effective way of lowering the total cost of ownership, (often by as much as 12 percent*) and improve your financial return for
Feedback
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Better proposals, bigger profits with IBM Global Financing Sell more, win more and drive more profit
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the IT solution"
"In that case, please contact us as soon as you are ready to move forward with a cash purchase"
This customer did not take into consideration financing based on company policies. Although they are ready to buy and consider your proposal as a great solution the budget constraints are stopping them from closing the purchase.
As a sales consultant you should offer alternatives to facilitate the sale. Remember some of the items on the four sales steps:
Recognize when potential
customers are ready to buy "And what will you do with the equipment at the end of its life?" "Fair market value leasing is often the easiest, fastest and most effective way of lowering the total cost of ownership, (often by as much as 12 percent*) and improve your financial return for the IT solution." Alluding to the aspects of equipment disposal is a good reply to this customer in order to make the customer think and change his mind about leasing. However, this comment still doesn't make any mention about IBM Global Financing as the captive financier of a world-class IT and business solutions provider. Its combination of technology and finance background and capabilities can't be matched by many other financial institutions and solves the difficulty that some customers could have to access financing. Although this is not the best answer, it remains an effective way to continue driving your sales effort.
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Scene 4:
"A lease often lets you realize considerable savings compared to an outright purchase, because you pay only for the use of the equipment and it reduces the concerns and costs associated with equipment disposal. We can also provide a full payout lease or loan options at very attractive rates." "My company wont finance anything that doesnt qualify as an operating lease, so that rules out software and any other full payout acquisitions."
Options "Capital assets, including software, are depreciated on a company's books over time, and IBM Global Financing can offer attractive payment options from 12 to 60 months so you can pick the term that best suits your needs" "That's fine, I can quote you a Fair Market value lease on the hardware and you can pay cash for your software and services"
Feedback
"But take into account that capital assets, including software, are depreciated on a company's books over time, and IBM Global Financing can offer attractive payment options from 12 to 60 months so you can pick the term that best suits your needs"
Alluding to different solutions for hardware and software is a good reply to this customer in order to give the customer a possible solution to his needs. However, you are missing an opportunity to help your client package the total solution with financing and better match their costs to the expected benefits. You will convince the customer faster if you also mention briefly all the features and benefits on offer in this new option. Although this is not the best answer, it remains an effective way to continue driving your sales effort.
This customer is asking for a different kind of contract than you were prepared to offer. Although they are ready to buy, you have not been able to offer what they need. As a sales consultant you should offer alternatives to facilitate the sale. IBM Global Financing software financing
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provides an incremental source of funding for the up-front expenditures, allowing your clients to spread their investment across monthly payments and preserve their existing credit line for their strategic initiatives.
Final Scene
Instead of paying a lump sum payment upfront for software and services we can help you conserve your cash and give you the benefit for paying over time. Can we meet again to go through the IBM Global Financing options available and find out which best fits your needs? "That sounds really good. Let me check my agenda."
CONGRATULATIONS!! You are in good shape to close your sale. Choose from IBM Global Financing portfolio what offering best fits your customer's expectations. Look to lead with a monthly payment option in every proposal you do, to improve your business case or offer pre-owned IBM systems and make your solution more affordable!
You have reacted properly to the sequence of scenes presented covering the following objectives:
Identify problems your products, services and financing can solve Make sure the solution solves the customer's problem Recognize when potential customers are ready to buy Choose from the IBM portfolio of migration or consolidation assessment tools and incentive offerings to open doors with customers and progress deals
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Better proposals, bigger profits with IBM Global Financing Sell more, win more and drive more profit
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2 Explore PartnerWorld
3 Questions?
Legal Disclaimer:
IBM Global Financing offerings are provided through IBM Credit LLC in the United States and other IBM subsidiaries and divisions worldwide to qualified commercial and government clients. Rates and availability are based on a clients credit rating, financing terms, offering type, equipment and product type and options, and may vary by country. Non-hardware items must be one-time, non-recurring charges and are financed by means of loans. Other restrictions may apply. Rates and offerings are subject to change, extension or withdrawal without notice and may not be available in all countries. IBM and IBM Global Financing do not, nor intend to, offer or provide accounting, tax or legal advice to clients. Clients should consult with their own financial, tax and legal advisors. Any tax or accounting treatment decisions made by or on behalf of the client are the sole responsibility of the client. IBM, the IBM logo, ibm.com and Rapid Financing are trademarks of International Business Machines Corp., registered in many jurisdictions worldwide.
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Better proposals, bigger profits with IBM Global Financing Sell more, win more and drive more profit
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Conclusion
This is the end of the learning module Better proposals, bigger profits with IBM Global Financing.
In Know IBM Global Financing you learned about the key features, the lead offerings and tools, and the main reasons for clients to use the IBM Global Financing services In Sell IBM Global Financing you learned about the selling process and opportunities, target clients, competitive differentiators and how IBM Global Financing contributes to a Smarter Planet. You have also learned how to better handle your sales conversations, handle the client concerns and give valuedriven responses
To review Learn and Earn deadlines please access the Terms and Conditions located on the Know Your IBM (KYI) site at http://www.ibm.com/partnerworld/knowyouribm. Once you enter the quiz, you will not be able to return to the module so please ensure you have reviewed the entire module in detail. As a Know Your IBM user you have the option to view education modules in numerous languages. Please note that you only get rewarded once for completing each module. Good luck!
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