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<td colspan="14" align="left" valign="top" bgcolor="#FFFFFF" ><h1>Using "Safety Nets" To Sell More Education Agreements.</h1>
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<h2><span class="default">Everywhere you look, clever training
companies are trying to rope customers into binding, long-term
agreements that commit them to high purchase volumes, no matter
what. </span></h2>
<p><span class="default">Meanwhile, customers are going to Houdini-like lengths
to enjoy all of the discounts and benefits inherent in high
volume agreements -- while wiggling out of any sort of performance
commitments.</span></p>
<p><span class="default">Here's a way out.</span></p>
<p><span class="default">Take the same rope you were hoping
to hog-tie your customer with, and use it to weave a safety
net. Build in a post sale option to rescale the agreement
in a fair and preordained way once the need for training is
better known. Provide plenty of "wiggle room" for substitutions
across your curriculum and delivery options. Give your customer
the option of backing out of the agreement entirely providing
they pay you fairly for any training they have consumed.</span></p>
<h4><span class="default">Whoa, whose side am I on, anyway?!
Well, let's consider the advantages of the safety net approach.</span></h4>
<ol type=A>
<li><span class="default">By building wiggle room and escape
clauses into your agreements you greatly reduce up front
sales resistance. Who can build a consultative selling relationship
when you're perceived as an adversary.</span>
<p>
</li>
<li><span class="default">By moving the need for a detailed
training planning analysis until after the sale, the sales
process is greatly accelerated. Also, it's much easier to
accurately determine the nature and scope of training needs
once the customer relationship is underway.</span>
<p>
</li>
<li><span class="default">Also, a post sale training analysis
and planning effort minimizes the likelihood your original
proposal will be shopped -- or that you will squander scarce
consulting resources on a deal that never goes down.</span>
<p>
</li>
<li><span class="default">Customers are a lot more likely
to stretch if they know they are not going to suffer any
serious consequences if they in good faith overestimate
their need. Otherwise, they'll just commit to enough to
last them to the end of the quarter -- and you'll have to
start negotiating all over again.</span>
<p>
</li>
<li><span class="default">Why build punishing performance
clauses into your customer agreements, if you're not prepared
to enforce them, anyway? I see too many situations where
sales and customer relations personnel are consumed with
resolving deals that have gone sour, while the tough-talking
higher ups who wrote the contract language look the other
way.</span>
<p>
</li>
<li><span class="default">Finally, how do you renew a volume
purchase agreement where you won and your customer lost?
That's one sales call I'd rather not go on!</span></li>
</ol>
<p><span class="default">OK, so much for all of this safety
net stuff. But suppose your customers actually take advantage
of your good graces -- what then?</span></p>
<p><span class="default">Well, if you structure your safety
net correctly, there's a fair give and take if your original
agreement needs to be revisited -- so everybody wins. Furthermore,
you'd be surprised how infrequently customers actually exercise
their option.</span></p>
<p><span class="default">Some time ago we structured a volume
purchase program with an extremely generous bail out clause
-- which earned us a loud "you'll be sorry" chorus from the
usual evaluator-critic crowd. Surprisingly, out of more than
600 agreements sold, not one customer chose to accept their
exit privileges!</span></p>
<p>^ <a href="#top">TOP of page</a> </p></td>
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