See the process we use when helping our clients sell to oil and gas companies, along with a real world example.
Transcript of Session –
Hey, folks. Let’s learn something new about the oil and gas industry, shall we?
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All right. Today’s show, we’re going to actually show you what we do. We get asked this question a lot, so instead of telling you, thought we’d show you both the process and the actual example with the clients, so enjoy.
All right. We’re going to show you using the real client, the actual process that we use to help people sell to the oil and gas industry.
So your company makes a product or a solution and you’re trying to sell it. Well, that product and solution actually fixes a problem. So you need to know what problem that it fix. Then you need to figure out who has that problem and then who receives the value of having that problem fixed and when you figure that out, you have identified your target.
So, let’s talk about this with a real client. We had this Chinese manufacturer approach us and they basically made a slip ring for the wellhead to goes on sand control and it looks something like this, not very glamorous, but they actually can make it for half the cost. Currently, this thing was going for $150 each and they could make it for $75. So, they did the one thing that I hate to see companies do, but I see it on a weekly basis is they come to Texas, they open an office, they hire an oil and gas salesperson. They think they know what they’re doing, right? They’re going to sell to supply chain and their values could be cost savings and the salesperson and the company is convinced money will just pour in, right?
Well, one year later, they have not sold a damn thing and everybody’s pretty upset. So they find us and what do we do? We go out and do the research. We actually interview business leaders in the oil and gas industry. In this case, we talked to the same control units of Baker Hughes, Halliburton, Schlumberger, and Weatherford. And guess what we found out? They could care less about the price, what they cared about most was quality, right? If this thing broke, they had to stop production and pull the tree off the wellhead, that’s a million dollars.
So, we put a strategy plan together based upon this research and come to find out their target was not supply chains, actually the operations manager, right? The guy that had multiple sites under him that they had to make sure he hit his production numbers and the value is not cost savings it’s actually quality. So the results, they’ve now increased their price from $150 and remember, they wanted to sell it for $75 to $400. They have a hundred percent of Weatherford’s business and they have people waiting to do business with them.
So, let’s look at what they thought before. Before they thought their value was the 50% cost savings and they thought their target was supply chain and the value is they where a low price leader. They were completely wrong. After we did our research, they were able to increase their price 274%, their target was actually operations manager and the value is actually zero defect quality assurance.
I hope that helped. God bless the USA and the oil and gas industry.
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