Fundamentals of Selling 13th Edition by Charles Futrell

Exercise 8

As a salesperson for the Electric Generator Corporation, you have decided to attempt to sell your EG 600 generator to the Universal Construction Corporation. The EG 600 costs about $70,000. You estimate that operating and maintenance costs will average $3,000 a year and that the machine will operate satisfactorily for 10 years. You can offer a $65,000 price to Universal if it purchases 10 to 20 machines. Should it purchase more than 21 machines, the cost would be $58,000 per generator. The generators currently used originally cost $65,000, have a life of seven years, and cost $5,000 each year to operate. As far as you know, Universal's present supplier cannot offer a quantity discount.
a. Develop a value analysis table comparing the two generators.
b. In your presentation, what are the selling points you would stress