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You are here: Home / News & Updates / Generate Value from Selling

Generate Value from Selling

April 1, 2014 By maurasf

Sample Value Generation Letter

Date

XYZ Transportation
Anytown, USA

Dear (Maintenance Manager):

We have been working with the XYZ Transportation staff in our role as your lubricants supplier.  Super Supplier Inc.  would like to report the savings and revenue contribution we’ve been able to provide your operation.

We discussed extending your oil drain intervals when using a premium product like Super Engine Oil 15W-40.  Using oil analysis, we were able to extend your oil drain intervals from 20,000 miles to 30,000 miles. As a result, this contributed to XYZ Transportation saving $45,071.10 annually and increased revenue of $30,466.80 annually.

We appreciate the opportunity to work with  (Name of an employee who you would like to give recognition) who has been instrumental in achieving these savings.

As your lubricants supplier we believe it is our role to continue to add value to your operation.

Thanks again for your continued support of Super Supplier Inc.lubricants.  We appreciate your business.

Sincerely,

 

Sales Representative


Annual Savings Calculations

45 tractors
Truck Mileage
5,000 miles/week x 52= 260,000 miles/year/truck
Oil change time= 2 hours
Labor rate= $57/hour
Filter cost= $25
Oil cost= approx $7

Truck Revenue/hour= 60 miles/hour x 1.30/mile (approximate industry figure)=$78/hour

  Annual Costs with 20M mile oil change Annual Costs with 30M mile oil change
Annual mileage/tractor 260,000 260,000
Oil change time/tractor 2 hours 2 hours
No. of oil changes/tractor 260M /20M=13 260M/30M= 8.66
Labor costs /tractor 13 x 2 hours x $57=$1482 8.66 x 2 hours x $57=$987.24
Filter costs/tractor 13 x $25= $325 8.66 x $25= $216.50
Oil cost/tractor 13 x $7/gallon x  14 gal=$1274 8.66 x $7 x 14 gal =$848.68
Total cost $3054/tractor x 45 tractors=$137,430

 

$2052.42/tractors x 45 tractors=$92,358.9
Annual Savings $45,071.10

 

Productivity impact20M mile changes Productivity impact30M mile changes
Productivity loss 2 hrs. x 13 changes = 26 hours 2 hrs. x 8.66 changes= 17.32
Productivity gains  0 hours 26 hours – 17.32 hours=8.68 hours
Approximate Revenue Gain/truck 0 8.68 hours x $78=$677.04
Fleet Revenue Gains 0 $677.04 x 45 tractors =$30,466.80
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About the principal

Would you take auto mechanics classes when you buy a car? Maura did because she wanted to be able to work on her car. She takes that same approach to selling. She can show you how to get below the surface of selling to learn why and how different strategies work. She will show you which skills to implement that will shorten your sales cycle and increase your sales. She was Mobil Oil's first female Lubrication Engineer in the United States and one of Chevron's top 5 salespeople in the country. She knows what works for sales.

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