Sales Pitching

As companies are becoming more competitive, it is important for them to make sound and reliable decisions. In this essay, I had the opportunity to observe a co-worker (Milhouse) close on a sale. The concept of this observation is to understand and improve future sales commitments. I will analyze this by (1) how Milhouse framed is decision, (2) what alternative decision could have been made and (3) implicating our judgments and how they influence others.

Whether you are a business owner, executive, salesperson or customer- service professional, your success will increasingly depend on your ability to function in a competitive market. Milhouse is convinced that a particular machine is vital to the company's daily operations. A salesman from an outside company is trying to convince Milhouse that additional parts are needed to ensure the life span of a vital asset that the company requires. When the salesman compared the cost of the asset to a daily cost of soda, Milhouse made a decision to purchase the asset under the impression he was saving company funds.

I think Milhouse did not exhaust all avenues before making his decision. Even though the salesman had a very strong approach, Milhouse did not consider the total cost of the asset. For example, the total cost of the asset is ten thousand. If financed the asset for five years at a daily cost of forty cents per day (less than the cost of a soda), than the total cost of the asset is twenty thousand. Then Milhouse just made a bad decision. Milhouse should have research the salesman offer at little closer and should have realized the company can make due without the asset. If the machine required it, the asset would have been purchased at the time of the original sale.

It is important for all managers to understand all aspects of a sale's offer to ensure they make the right decision for company. Many salesmen are persuasive and successful at achieving their goals and quotas. They enjoy using scenarios that people can relate to on a simple level. (i.e. forty cents per day is less than a can of soda) Scenarios can take away from the reality of a sale causing the buyer to commit. It is up to the decision maker to analyze the offer and ensure the correct decision is made for the benefit of the company.

Managers are charged with making sound and reliable decisions. Educating managers to understand how decisions are framed, what implicates our judgment,