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KI Architectural Wall

KI Architectural Wall. KI Architectural Wall. The Case: How to sell WALL to Corporate America. KI Architectural Wall. Facts:. The main users of movable walls are the Fortune 1000 corporations of America. They have the most churn..

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KI Architectural Wall

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  1. KI Architectural Wall

  2. KI Architectural Wall The Case: How to sell WALL to Corporate America

  3. KI Architectural Wall Facts: • The main users of movable walls are the Fortune 1000 corporations of America. • They have the most churn.. • BOMA, IFMA and Facility Management Services Ltd. Have conducted surveys of the Fortune 1000 and have found an average of 30% to 45% churn Why?

  4. KI Architectural Wall Autopsy of a Dead Corporate America Company • Victim: AKZO- Nobel • Verdict: SMED Lifespace • Possible Motives: • Relationship between SMED and AKZO-Nobel • Lack of KI contact with AKZO-Nobel • Aesthetics

  5. KI Architectural Wall • Sequence of events: • KI is called in by A/D firm to review literature and pricing • Mart showroom visit by “B” team from A/D firm for “Genius” demo • Never allowed to contact or meet AKZO-Nobel directly for needs analysis, product demonstration, to explain our pricing proposal, or do an ROI • Result: 3 floors of SMED

  6. KI Architectural Wall • How to avoid and overcome this scenario next time: • Find out who is really in control of job • End user • A/D firm • Dealer • Get in early and build relationship with End user and A/D firm

  7. KI Architectural Wall • Conduct a “needs analysis”

  8. In order for KI to better understand and respond to your needs, please take a moment and rank the following items according to importance in electing a movable wall system. RANK 1) ___ Furniture hang-on capabilities 2) ___ Company financial strength and manufacturing capabilities 3) ___ Electrical and communications capabilities 4) ___ Aesthetics 5) ___ Price 6) ___ Finish changeability (i.e. being able to change outside finishes from vinyl to wood to fabric, etc.). 7) ___ Lead Times 8) ___ Door reversibility 9) ___ Number of pieces and parts 10)___ Movability – initial installation and take down and re-erect, 11)___ Sound S.T.C. USE: 1 – 11 for ranking with 1 being highest priority.

  9. KI Architectural Wall • Show them the “Genius” product • Preferably a demonstration Once they see it they’ll believe!

  10. KI Architectural Wall • Do an ROI • Genius qualifies for 7 year depreciation • 64% depreciation factor the first year • Payback - graph where lines cross • Stress the ”Green” or environmental factors • 100% recyclable • LEEDs Points • Cost and inconvenience of disposing drywall

  11. KI Architectural Wall Plan: • Review your top 75 accounts • Personally or thru Market Development secure appointments to introduce “Genius” to them • Through lunch and learn or appointments make sure your A/D clients are aware of “Genius” and it’s benefits

  12. KI Architectural Wall • Use your resources • Regional Wall Sales Managers • Corporate resources • Genius web site

  13. KI Architectural Wall Frank Sinatra once sang a song called “New York, New York” “Start spreading the word” about “Genius”

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  15. KI Architectural Wall For a good time call Dennis

  16. KI Architectural Wall The Case: How to sell WALL Educationally

  17. Autopsy of a Dead College/University Project KI Architectural Wall • Victim: Boston College Administration Building • When: Fall 2001-Spring of 2002 • Verdict: Lost proposal to “Gravity Lock”. • Possible Motives: • KI didn’t get involved enough to uncover “need payoff questions” and establish credibility. • Customer wanted flexibility, a minimum 40STC and a relatively “Green” product at lowest cost, but we never had the opportunity to spin those criteria face to face.

  18. KI Architectural Wall Autopsy of a Dead College/University Project • Time frame - coincided with the introduction of Genius ? We initially submitted SystemsWall. • . In the fall we provided some RFI responses from the architect. • “Leeds” program was not clearly defined and established. • RFQ was released in the form of a generic architectural product bid. • Walls weren’t perceived internally at KI as having much application in the educational markets.

  19. KI Architectural Wall • Key Decision Criteria stated in RFQ • Flexibility. • Price. • Performance; i.e., STC, transverse load, load bearing, and flame spread. • Aesthetics. Match with systems furniture (still to be selected).

  20. KI Architectural Wall Uncovering the primary clues • What are the implied needs ? • Who are the key decision makers ? • Does our wall solution really address their explicit needs? • Can we influence the decision makers and how will that be done ? • Can we be perceived as education market consultants ?

  21. KI Architectural Wall Educational Market Key Wall Points Customized solutions Managing changing technology Sound management Changeable classrooms Image enhancement Natural light in classrooms

  22. KI Architectural Wall Autopsy of a Dead College/University Project • Victim : • Boston College Administration Building • Next Time: • Attain key buying criteria information earlier in the process • Influence specifications by educating the specifiers • Influence decision makers with solution benefits

  23. KI Architectural Wall • The final twists Project was put on hold and was then done primarily in conventional construction. The Patriots are going to the Super bowl for the second time in three years.

  24. CSI Green Bay The Case: Post-mortem analysis of a slaughtered HEALTHCARE wall sales opportunity

  25. KI Architectural Wall Autopsy Results Victim: Toe Tagged as “John Hopkins Doe” Approximate time of Death: Spring 2003 Probable Cause: congenitally underdeveloped client need which was severed by a perpetrator – likely to be an unsophisticated homeless Sales Professional. This lead to a fatal condition which allowed the project to go “fixed construction”.

  26. KI Architectural Wall Possible Motives: • KI Sales Professionals didn’t do enough research and fact finding to uncover all of the clients needs; both implied & explicit. • KI Sales Professional did not understand his audience – HEALTHCARE – and how purchasing decisions are made and by whom • KI Sales Professional involved too late in the process

  27. KI Architectural Wall • Perception VS Reality in Healthcare Wall Sales • KI Sales thought that the hospital Purchasing Agent was making the decision….. BUT it was the hospital Department Head, CFO and Administrator that typically make the decisions. • KI Sales thought that the ROI, factoring in churn and accelerated depreciation, was significant enough to ensure we would get the business…..But this hospital, like many, was a non –profit hospital which can’t take advantage of depreciation at all.

  28. KI Architectural Wall • Perception VS Reality in Healthcare Wall Sales • KI Sales thought that the hospital was interested in flexibility alone…..BUT the client would have been even more interested in knowing about the schedule compression capabilities of our walls since they were behind schedule and had a leased space that they had to be out of to avoid penalty costs Additionally, fact that our walls are Green Guard rating for off-gassing of VOC’s, reduces the amount of time a project must “cure” before being occupied.

  29. KI Architectural Wall • Perception VS Reality in Healthcare Wall Sales • KI Sales also forgot to mention the significant hard and soft dollar cost savings our wall offers due to the cleaner installation / reconfiguration process and Green Guard Rating; not to mention the health benefits to patients. The hospital recently spent 500k to take care of some “sick building” issues.

  30. KI Architectural Wall • Perception VS Reality in Healthcare Wall Sales • KI Sales forgot to mention our strong sustainability story and how we can help support the LEED certification process. The hospital was being Federally Funded, and as such had to meet a minimum “Silver” level of certification.

  31. KI Architectural Wall • Final Analysis • When Selling Walls to Healthcare • Know your Audience • Focus on how you can help them manage the four D’s associated with fixed construction – Dust, Dollars, Downtime & Disruption. • Remember that you can never be in too early!

  32. KI Architectural Wall The Case: How to sell WALL to the FEDERAL GOVERNMENT

  33. KI Architectural Wall Autopsy of a Dead Federal Government Project • Victim: Travis AFB • Verdict: Customer Wanted Haworth Stack-on Panels • Possible Motives: • Haworth panel system is on GSA • Flexibility of using the same panel for the systems and the walls

  34. KI Architectural Wall Autopsy of a Dead Federal Government Project • Victim (con’t): Travis AFB • Next Time: • KI Genius Wall is on GSA in a limited offering • Stress acoustics. Panel systems to the ceiling offer very low STC values.

  35. KI Architectural Wall FEDERAL GOVERNMENT PROCUREMENT 1) Unicor 2) GSA 3) Open Market

  36. KI Architectural Wall UNICOR The Federal Prison Industries provides interior furniture products to federal installations. Walls are sometimes combined with these orders and are pulled through. The orders are fostered and developed by the OEI group at KI.

  37. KI Architectural Wall GSA • KI has partnered with AIS in order to get the Genius Wall on GSA contract. This contract was signed in December 2003 and a limited product offering is available (i.e., solid powdercoat panels, solid panels with two specific fabrics, and pivot and butt hinge door types). Registration for these projects will go through the GSA regional sales managers as the product can be sold either through AIS or the KI-GSA aligned dealers. • The AIS KI price list will be mailed to GSA purchasing offices.

  38. KI Architectural Wall OPEN MARKET This means that the federal building has waived Unicor and has decided not to procure through GSA or Unicor. KI’s standard processes will apply.

  39. KI Architectural Wall • Key Decision Criteria • 1) LEED: As of January 2003, all new federal building installations must confirm to bronze level LEED building status. • Price. • Performance; i.e., STC, transverse load, load bearing, and flame spread. • Schedule compression alternative. Pre-engineered walls can be provided in a shorter time frame than conventional construction.

  40. KI Architectural Wall Q: How many Pentagon procurement officers does it take to change a lightbulb ? A: Look, for only $87 billion, we can put up this chain of fluorescent satellites that will illuminate the whole planet.

  41. KI Architectural Wall How to sell WALL to the A & D FIRMS

  42. KI Architectural Wall The Challenge: KI Genius Wall was “Dead in the Water” before specification process The following A & D firms will not even consider a KI Genius spec: - Gensler - Swanke Hayden Connell - SOM The volume lost is not measurable, but substantial.

  43. KI Architectural Wall The offense: The thickness of Genius Trim Profile is 3 1/2”.

  44. KI Architectural Wall The Solution: The new Slim Line Genius 1-7/8” profile.

  45. KI Architectural Wall The Current Situation: The culprit has been identified and new methods of fighting the local “germ slim profile warfare” or ACME, have been implemented.

  46. KI Architectural Wall The Verdict: The aforementioned A & D firms love the new Slim Line Genius and can’t wait to specify it for KI profitable volume.

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