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GLOBAL LEADER IMPROVES THEIR GROSS MARGIN
A medical equipment division of one of the world's largest publicly traded medical products companies needed to improve its gross margin. After completing an analysis of the business issues, executives concluded that one of the areas responsible for the decline was the sales team. While the sales team was highly skilled in the capital product they sold and had an impressive record of past sales successes, over the past few years the market had begun to mature. Furthermore, the doctors and hospital administrators saw all competing products as essentially the same.
Using the Accordence approach to negotiation, the medical device company achieved their business result. At the National Sales Meeting the following year, the Senior Vice President in his opening address thanked the sales team for exceeding their placement goals for the prior year and announced that they did it while improving their gross margin by five points over the prior year. He attributed it directly to the negotiation strategy and training the sales team executed during the year. The company continues to use the Accordence methodology to improve the quality and quantity of their equipment sales.
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