The Quotation That Went Silent
A sales engineer for a commercial refrigeration company has presented a blast chiller and cold-room package worth ₹18.5 lakh to a 120-room hotel in Guwahati. The executive chef and general manager liked the demonstration; the purchase manager asked for a written quotation and said he would come back. Three weeks later, there is no response. The rep has learned that a competitor quoted about 8% lower, offers a two-year warranty instead of one, and can install in four weeks against the rep's six. The hotel's financial year closes in five weeks and peak conference season starts in October. The rep's quarter ends in ten days and he proposes a 10% discount plus free annual maintenance to close immediately, even though the company's floor price leaves only 4% margin at that level. His regional manager asks for a call plan before authorising any concession.
1. Where in the selling process is the opportunity stuck, and which steps were probably skipped? What should the rep establish before discussing price?
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The opportunity is stuck between the presentation and the close; 'send a quotation and we will come back' is a stall, not a buying signal. The rep presented to the chef and general manager - likely user and initiator - but never qualified the decision-making unit. The purchase manager may be a gatekeeper or buyer with his own criteria (price, warranty, payment terms, vendor registration), and finance has not been heard from. No trial close was attempted, and no confirmation was obtained on budget, approval route or installation window. Competitor information arrived second-hand and was not tested. Before any concession, the rep should map who signs, who can veto and what each cares about; confirm the hotel's evaluation criteria; ask what happens after the quotation is received; and establish the financial-year and conference-season deadlines as legitimate timing pressure rather than as a reason to cut price.
2. Should the regional manager authorise the 10% discount? Give your reasoning and an alternative concession structure.
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No. A 10% cut leaves 4% margin on an ₹18.5 lakh order - about ₹74,000 gross - and it concedes before the objection is known. Silence is not a price signal; the buyer may be comparing installation time, warranty or service response. Discounting now also sets the reference price for every future order and for the competitor's next quote. The manager should authorise a value package instead: match the two-year warranty if its cost is below the discount value; offer a phased installation that meets the October deadline; include a service-level agreement with stated response times; offer a reference visit to an installed site; and hold price. If a concession is unavoidable, make it conditional - extended warranty only against a signed order before the financial year closes, or a smaller scope at a lower price rather than a discount on the same scope.
3. Draft the next-call plan: the questions to ask, the value argument, and one closing approach.
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Request a 30-minute meeting with the purchase manager and ask for the chef or general manager to join the technical part. Questions: which criteria will the hotel use to compare the two quotes; who else must approve; what installation window is acceptable before the conference season; what warranty and service response the hotel expects; and what would stop the order. Bring a total-cost-of-ownership sheet over five years covering energy, maintenance and downtime, not just the quote. Trial close: 'If we can commit to a four-week installation and match the two-year warranty, is there any other reason you would not place the order this month?' If yes, handle that objection; if no, ask for the purchase order and a milestone date. If the buyer still stalls, ask for the real reason and be prepared to walk away rather than buy the order with margin.