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Why can upgrades create a conflict

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This is a one page case study showing how sales can be driven in the wrong direction when it comes to selling conversions, modifications and upgrades. HR please find the right metrics to drive margins and cash generation.

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Page 1: Why can upgrades create a conflict

Why$can$upgrades$create$a$conflict?$

Service'Innova,on'–'defending'products'with'service''''|'Dr'Shaun'West'

Service'business'

OEM'business'

Customer'

RFQ:''

New'or'upgrade'on'

exis,ng'equipment'

Hidden'budget'3M'

CHF'

Service'offer:''

2M'CHF'

20%'ROS'

3'month'lead',me'

The'service'business'is'

‘stealing'my'sale’''

Solu,on:'The'customer'cannot'afford'the'new'equipment'as'budget'is'only'3M'CHF.''

Service'business'sells'the'upgrade.''Deliver'good'service.''Provide'great'customer'

experience'and'technology'performance.'Expecta,on'is'that'when'new'equipment'RFQ'

issues'the'OEM'is'well'placed'to'sell'new'unit.'

Risk'of'conflict'between'OEM'

and'service'parts'of'the'

business!'OEM'offer:''

10M'CHF'

5%'ROS'

12'month'lead',me'