Amhurst Computer, Inc.

Submitted by Group 12 Saurabh Arora J Abhinav Amanpreet Singh Marco M Sebastian A.

Outline
Jay Allen is a representative for Amhurst Is short of annual target by $25000 Gets a prospective client in the form of Uptown Clinic Deals with Jones Office Manager for Uptown and Seawell, an independent consultant Two possible Amhurst Computers could satisfy Uptown Z600 ($30000) and X300 ($10000) Z600 is a newer and better model and also helps meet Sales Target

The Decision
Allen decides to go with Z600 But doctors refuse citing high price He makes another proposal trying to sell X300 Jones and Seawell think he was trying to price gouge Uptown Allen tries to smooth the situation over He also sends proposals to the 5 Doctors at Uptown Seawell is not happy with this and cuts all ties with Amhurst

Mistakes made by Allen

Hiding the fact that they had a lower priced product from clients
He was worried about meeting his targets more than the customers interests

Sending the proposals for X300to the doctors also

This shows Allen doesnt trust Jones and Seawell to communicate his proposals This completely undermines their trust and confidence in Allen ruining the relationship

What Allen could have done

In the first proposal itself he could have listed both Z600 and X300
By this he could have compared and contrasted both the system Given them a clearer explanation of how Z600 is a better long term investment Talked about how after sales service would not be that great for X300 as it is going out of production

In the meetings before his first proposal, he should have used SPIN techniques
It would have helped the clients get a better understanding of what they wanted Thus he could have convinced them to buy the Z600 without a lot of trouble

Managements Role
Have clear direction telling employees how to approach sales Rather than a fixed annual commission ($5000), a performance based incentive could have been better
The entire fiasco happened because Allen was short sighted and wanted his commission If it was a percentage of sales or a percentage deduction of the amount he has fallen short by, this wouldnt have occured

Questions?